The following transactions for Tireboyz Tire, Inc., occurred during November: Nov 4 7 Purchased $200 of...

     

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The following transactions for Tireboyz Tire, Inc., occurred during November: Nov 4 7 Purchased $200 of supplies on account from Office Depot. Terms, 3/10, n/30, FOB destination. 9 Sold $1,800 (cost, $275) of merchandise on account to A. Right. Terms, 1/15, n/45, FOB destination. 11 Paid $95 freight charges to deliver goods to A. Right. 13 Returned $1,200 of the merchandise purchased on November 4 and received a credit. Purchased $5,400 of merchandise on account from Bestbuy Tire. Terms, 2/15, n/45, FOB shipping point. Bestbuy Tire prepaid the $250 shipping cost and added the amount to the invoice. 15 Sold $650 (cost, $450) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Bestbuy Tire the amount due from the November 4 purchase in full. 20 A. Right returned $300 (cost, $180) of merchandise from the November 9 sale. 22 Purchased $4,100 of inventory. Paid cash. 23 Received payment in full from A. Right for the November 9 sale. 30 The refund liability for the month of November was estimated to be $270. The cost of goods estimated to be returned was $135. Requirements 1. Journalize the transactions on the books of Tireboyz Tire, Inc. assuming the "net" method is used. 2. What was Tireboyz Tire, Inc.'s gross profit for the month of November? Requirement 2. What was Tireboyz Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Gross profit The following transactions for Tireboyz Tire, Inc., occurred during November: Nov 4 7 Purchased $200 of supplies on account from Office Depot. Terms, 3/10, n/30, FOB destination. 9 Sold $1,800 (cost, $275) of merchandise on account to A. Right. Terms, 1/15, n/45, FOB destination. 11 Paid $95 freight charges to deliver goods to A. Right. 13 Returned $1,200 of the merchandise purchased on November 4 and received a credit. Purchased $5,400 of merchandise on account from Bestbuy Tire. Terms, 2/15, n/45, FOB shipping point. Bestbuy Tire prepaid the $250 shipping cost and added the amount to the invoice. 15 Sold $650 (cost, $450) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Bestbuy Tire the amount due from the November 4 purchase in full. 20 A. Right returned $300 (cost, $180) of merchandise from the November 9 sale. 22 Purchased $4,100 of inventory. Paid cash. 23 Received payment in full from A. Right for the November 9 sale. 30 The refund liability for the month of November was estimated to be $270. The cost of goods estimated to be returned was $135. Requirements 1. Journalize the transactions on the books of Tireboyz Tire, Inc. assuming the "net" method is used. 2. What was Tireboyz Tire, Inc.'s gross profit for the month of November? Requirement 2. What was Tireboyz Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Gross profit

Answer rating: 100% (QA)

1 Journalize the entries as per the Net Method as follows Date Account Title Debit Credit Nov 4 Merc... View the full answer