What is nicoles getaway spas gross profit percentage

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Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aroma-therapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold 10 items of merchandise to Salon World on account at a selling price of $ 1,000 (total); terms 2/10, n/30. The goods cost NGS $ 650. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $ 500 (total); terms 2/10, n/30. The goods cost NGS $ 400. Aug. 6 Cosmetics R Us returned one of the items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Collected payment from Salon World, fully paying off the account balance. Aug. 20 Sold two at-home spa kits to Meghan Witzel for $ 300 cash. The goods cost NGS $ 96. Aug. 22 Cosmetics R Us paid its remaining account balance in full.

Required:

1. Prepare journal entries for each transaction.

2. Calculate the amount of Net Sales and Cost of Goods Sold for the transactions listed above. What is Nicole's Getaway Spa's gross profit percentage (round to one decimal place)? Explain to Nicole what this gross profit percentage means. 

Reference no: EM13875450

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