The following transactions for Quality Tire, Inc., occurred during November: Nov 4 Purchased $5,600 of merchandise on
Question:
The following transactions for Quality Tire, Inc., occurred during November:
Nov 4 Purchased $5,600 of merchandise on account from Tri-States Tire.
Terms, 2/15, n/45. FOB shipping point. Tri-States Tire prepaid the $650 shipping cost and added the amount to the invoice.
7 Purchased $475 of supplies on account from Office Express. Terms. 4/10, n/30, FOB destination.
9 Sold $1 .200 (cost, $720) of merchandise on account to M. Ekins.
Terms. 3/15, n/45, FOB destination.
11 Paid $45 freight charges to deliver goods to M. Ekins.
13 Returned $900 of the merchandise purchased on November 4 and received a credit.
15 Sold $1,540 (cost. $925) of merchandise to cash customers.
16 Paid for the supplies purchased on November 7.
18 Paid Tri-States Tire the amount due from the November 4 purchase in full.
20 M. Ekins returned $500 (cost. $280) of merchandise from the November 9 sale.
22 Purchased $3,900 of inventory. Paid cash.
23 Received payment in full from M. Ekins for the November 9 sale.
Requirements
1. Journalize the transactions on the books of Quality Tire, Inc.
2. What was Quality Tire, Inc.'s gross profit for the month of November?
Step by Step Answer: