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E6-14 analyzing and recording sales and gross profit with sales returns [lo 6-4, lo 6-6] cycle wholesaling sold merchandise on account, with terms n/60, to sarah’s cycles on february 1 for $700 (cost of goods sold of $450). on february 9, sarah’s cycles returned to cycle wholesaling one-quarter of the merchandise from february 1 (cost of goods returned was $110). cycle wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale. required: 1. to 3. prepare the journal entry to record the sales, goods returned on february 9 and cash collected on march 2. 4. calculate the gross profit percentage for the sale to sarah’s cycles. g
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E6-14 analyzing and recording sales and gross profit with sales returns [lo 6-4, lo 6-6] cycle whole...
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