Presented here are selected transactions for Niska Inc. during August of the current year. Niska uses a

perpetual inventory system. It estimates a return rate of $12\%,$ based on past experience.

Aug. $1$ Purchased supplies for $$2,500$ cash.

$3$ Purchased inventory on account from Kenliwa Corp. at a cost of $$35,000,$ terms $\frac{2}{20},\frac{n}{45},$ FOB

shipping point.

$4$ Freight charges of $$1,200$ were paid by the appropriate party on the August $3$ inventory

purchase.

$6$ Sold goods costing $$10,000$ to Penkwa Limited for $$25,000$ on account, terms $\frac{n}{30},$ FOB

destination.

$7$ Freight charges of $$500$ were paid by the appropriate party on the August $6$ sale of inventory.

$9$ Returned damaged goods costing $$3,000$ that were originally purchased from Kenliwa on

September $3.$ Received a credit on account.

$10$ Purchased equipment on account for $$45,000,$ terms $\frac{n}{45},$ FOB destination. $$ Seller fays

$11$ Freight charges of $$650$ were paid by the appropriate party on the August $10$ purchase of

equipment.

$13$ Purchased inventory for $$3,000$ cash.

$15$ Received the balance due from Penkwa.

$22$ Paid Kenliwa the balance due.

$26$ Sold inventory costing $$15,000$ to Makoons Inc. for $$30,000$ on account, terms n$/45,$ FOB $-$J buyer

shipping point.

$27$ Freight charges of $$750$ were paid by the appropriate party on the August $26$ sale of inventory.

$30$ Makoons returned goods sold for $$1,200$ that cost $$650.$ The merchandisewas restored to

inventory.

Instructions

a$.$ Record the August transactions on Niska's books.

b$.$ Determine Niska's sales and cost of goods sold for August.

c$.$ Calculate Niska's gross profit as a dollar amount and the gross profit margin as a percentage.