1. During the current year, merchandise is sold for $137,500 cash and $425,600 on account. The
cost of the goods sold is $322,325. What is the amount of the gross profit?
2. Journalize the following purchases and sales transactions for Manioc Corp. Assume Manioc uses
a periodic inventory system. Omit entry explanations.
Date
Apr. 1.
4.
6.
8.
8.
9.
Chapter 5
Accounting for Retail Business- Assignment
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12.
13.
Transaction
Purchased merchandise on account, list price $22,000, trade discount 30%,
terms FOB destination, 2/10, n/30.
Sold merchandise on account, $8.500, terms n/15.
Purchased merchandise on account, $18,000, terms FOB shipping point, 2/10,
n/30, with prepaid freight of $140 added to the invoice.
Sold merchandise on VISA, $14,500.
Returned damaged merchandise, $800, purchased on April 6.
Paid for the merchandise purchased on April 1, less discount.
Received cash on account from the April 4 sale.
Paid for merchandise purchased on April 6, less return and discount.
