value 5.00 points Two different companies, Ripper and Berners, entered into the
ID: 2414705 • Letter: V
Question
value 5.00 points Two different companies, Ripper and Berners, entered into the following inventory transactions during December. Both companies use a perpetual inventory system ipper Corporation sold inventory on account to Berners Corp. for $483,000, terms 2/10, n/30. This inventory originally cost Ripper $307,000 December 8- Berners Corp. returned inventory to Ripper Corporation for a credit of $3,100. Ripper returned this inventory to inventory at its original cost of $1,970 December 12- Berners Corp. paid Ripper Corporation for the amount owed. a. Prepare the journal entries to record these transactions on the books of Ripper Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for sale of inventory on account. Note: Enter debits before credits. Date General Journal Debit Credit Dec 03Explanation / Answer
Net sales – Cost of goods sold = Gross profit
$470,302 – $305,030 = $165,272
Gross profit/Net sales = Gross profit %
Date General Journal Debit Credit Dec 3 Accounts receivable $ 483,000 Sales revenue $ 483,000 Cost of goods sold $ 307,000 Inventory $ 307,000 Dec 8 Sales return & allowances $ 3,100 Accounts receivable $ 3,100 Inventory $ 1,970 Cost of goods sold $ 1,970 Dec 12 Cash( Diff) $ 470,302 Sales discount(479900 x 2%) $ 9,598 Accounts receivable $ 479,900 (483000-3100) b) Sales Revenue – Sales returns & allowances – Sales discounts = Net Sales $483,000 – $3,100 – $9,598 = $470,302 c)Net sales – Cost of goods sold = Gross profit
$470,302 – $305,030 = $165,272
Gross profit/Net sales = Gross profit %
$165,272 / $470,302 = 35.14% (rounded)Related Questions
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