Torrescarcovichwk3 - Exercise 5-2(a Journalize the...

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Exercise 5-2(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting). DateAccount Titles and ExplanationDebitCreditSept. 6Account payable1,6501,6509inventory50cash (to record payment of freight)5010Account payable66inventory (return of calculators)6612Account receivable690Sales revenue (to record sale)69012Cost of good sold520inventory (to record cost of item sold)52014Sales return and allowances45Account receivable4514Inventory34Cost of good sold3420Account receivable570Sales revenue (to record sale)57020Cost of good sold760inventory (to record cost of item sold)760cash (to record purchase of calculators)
Exercise 5-6Gross Profit Rate(a)Prepare an income statement using the format presented on page 243. Assume a 25% tax rate.(b)Calculate the profit margin ratio and gross profit rate.

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