Question

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

Check my work Required information [The following information applies to the questions displayed below.] Part 1 of 4 Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: points $294,300 eBook a. Sold merchandise for cash (cost of merchandise $160,750). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $930). c. Sold merchandise (costing $13,050) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. Print 1,730 29,000 14,500 1,980 References Required: 1. Compute Net Sales and Gross Profit for Campus Stop. Net Sales Gross Profit

Answer 1

Calculation of Net Sales
Cash Sales	$2,94,300
Credit sales	$29,000
Less:Merchandise return	-$1,730
Less:Partial Allowance	-$1,980
Net Sales	$3,19,590
Calculation of Cost of goods sold
Cost of Merchandise	$1,60,750
Cost of Merchandise	$13,050
Less:Cost of Merchandise returned	-$930
Cost of goods sold	$1,72,870
Gross Profit($319,590-172,870)	$1,46,720