Question

The following transactions for Salem Tire, Co. occurred during June 4-Jun Purchased $5,000 of merchandise on account from Peter's Tire. Terms. 2/15, n/45, FOB Shipping point. 5-Jun Salem Tire, Co. paid $150 shipping cost to get the goods. 7-Jun Sold $1, 400 (cost $750) of merchandise on account to L. Simpson. Terms 3/15, n/45, FOB Destination. 9-Jun Paid $35 freignt charges to deliver goods to L. Simpson. 11-Jun Returned $1, 100 of the merchandise purchased on June 4 and received a credit. 13-Jun Sold $900 (cost $475) of merchandise to cash customers. 15-Jun Paid Peter's Tire the amount due from June 4 purchase in full. 17-Jun L. Simpson returned $500 (cost $280) of merchandise from the June 7 sale. 21-Jun Received payment in full from L. Simpson for the June 7 sale. Requirements Journalize the transaction on the books of Salem Tire, Co. What was Salem Tire's gross profit for the month of June?

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