Two different companies,Vogel and Hatcher,entered into the following inventory transactions during December.Both companies use a perpetual inventory system.
December 3 - Vogel Corporation sold inventory on account to Hatcher Corp.for $240,000,terms 2/10,n/30.This inventory originally cost Vogel $160,000.
December 8 - Hatcher Corp.returned inventory to Vogel Corporation for a credit of $15,000.Vogel returned this inventory to inventory at its original cost of $10,000.
December 12 - Hatcher Corp.paid Vogel Corporation for the amount owed.
Required:
a.Prepare the journal entries to record these transactions on the books of Vogel Corporation.
b.What is the amount of net sales to be reported on Vogel Corporation's income statement?
c.What is the Vogel Corporation's gross profit percentage?

Question

Quizplus · Accepted Answer

The Answer of Two different companies,Vogel and Hatcher,entered into the following inventory transactions during December.Both companies use a perpetual inventory system.
December 3 - Vogel Corporation sold inventory on account to Hatcher Corp.for $240,000,terms 2/10,n/30.This inventory originally cost Vogel $160,000.
December 8 - Hatcher Corp.returned inventory to Vogel Corporation for a credit of $15,000.Vogel returned this inventory to inventory at its original cost of $10,000.
December 12 - Hatcher Corp.paid Vogel Corporation for the amount owed.
Required:
a.Prepare the journal entries to record these transactions on the books of Vogel Corporation.
b.What is the amount of net sales to be reported on Vogel Corporation's income statement?
c.What is the Vogel Corporation's gross profit percentage?

Two Different Companies,Vogel and Hatcher,entered into the Following Inventory Transactions