Cycle Wholesaling sells merchandise on credit terms of 2/10, n/30. A sale for $1,300 (cost of goods sold of $750) was made to Sarah’s Cycles on February 1.

Cycle Wholesaling sells merchandise on credit terms of 2/10, n/30. A sale for $1,300 (cost of goods sold of $750) was made to Sarah’s Cycles on February 1. Assume Cycle Wholesaling uses a perpetual inventory system.

Required:

1. to 3.

Record the entry for sales, cost of goods sold and cash collected on February 9 and March 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Explanation: 2. Cash = ($1,300 × 98%) = $1,274 Sales Discounts = ($1,300 × 2%) = $26 4. Gross Profit Percentage = Gross Profit × 100 = 524* × 100 = 41.1% Net Sales 1,274**  * $524 = $1,300 – 750 – (2% × $1,300) ** $1,274 = $1,300 – (2% × $1,300)