(Answered) Campus stop inc is a student co-op campus stop uses a

Accounting

Campus Stop, Inc. is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $ 152,070). $ 275,000

b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $ 800). 1,600

c. Sold merchandise (costing $ 9,000) to a customer on account with terms 2/10, n/30. 20,000

d. Collected half of the balance owed by the customer in (c) within the discount period. 9,800

e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid. 1,800

Required:

1. Compute Sales Revenue, Net Sales, and Gross Profit for Campus Stop.

2. Compute the gross profit percentage (using the formula shown in this chapter and rounding to one decimal place).

3. Prepare journal entries to record transactions (a) and (e).

4. Campus Stop is considering a contract to sell merchandise to a campus organization for $ 15,000. This merchandise will cost Campus Stop $ 12,000. Would this contract increase (or decrease) Campus Stop's gross profit and gross profit percentage (round to one decimal place)?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91538265
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the following information pertains to hagen

Question - The following information pertains to Hagen Metal Work's ending inventory for the current year: Item Quantity Unit Cost Unit Market Value C 90 $24 $16 D 75 22 20 K 40 25 28 M 22 15 17 Required - a. Determine ...

Question - on october 1 2018 daw inc signed a long-term

Question - On October 1, 2018, DAW Inc. signed a long-term, non-cancellable purchase commitment with a major supplier to purchase raw materials needed for production of the company's product during 2019 for $1,000,000. O ...

Question - lilly owns a hair dressing business she

Question - Lilly owns a hair dressing business. She purchases the following items for sole use in the hair dressing business: One special stand alone hairdryer on the 1st of July at a cost of $12,000. It has an estimated ...

Question - sandhill inc leased equipment from tower company

Question - Sandhill, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $424152, with the first payment due at lease inception. The lease does not transfer ownership, nor is ...

Question - asset acquisition vs stock purchase fair value

Question - Asset acquisition vs. stock purchase (fair value is greater than book value) Assume the investor purchases the same assets in #24, but now assume that the cash purchase price is $21,000. The investor is willin ...

Question - in 2018 x company expects to produce and sell

Question - In 2018, X Company expects to produce and sell 60,000 units of its only product for $33.98. The following are budgeted variable costs per unit: Direct materials - $4.12 Direct labor - 5.57 Variable overhead - ...

Question as the first step of your final project select

Question: As the first step of your final project, select three companies to evaluate for determining which is in the best financial health and would, therefore, be the most profitable investment. • What considerations m ...

Question upload a document that provides the following

Question: Upload a document that provides the following information. 1) Give a simple, nontechnical 1 sentence answer to the question posed (this is not a writing assessment, focus on research). 2) What is (are) the Code ...

Question as a financial consultant you have contracted with

Question: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a detailed report ill ...

Question - natalie is busy establishing both divisions of

Question - Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert