Gross profit percentage for the sale to sarahs cycles

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Cycle Wholesaling sells merchandise on credit terms of 2/10, n/30. A sale for $ 800 (cost of goods sold of $ 500) was made to Sarah's Cycles on February 1. Assume Cycle Wholesaling uses a perpetual inventory system.

Required:

1. Give the journal entry Cycle Wholesaling would make to record the sale to Sarah's Cycles.

2. Give the journal entry to record the collection of the account, assuming it was collected in full on February 9.

3. Give the journal entry, assuming, instead, that the account was collected in full on March 2.

4. Calculate the gross profit percentage for the sale to Sarah's Cycles (rounded to one decimal place), assuming the account was collected in full on February 9.

Reference no: EM13873236

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