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Use the GROSS and NET methods to account for all sales On 3/15/2013 Nestle Inc. sold...

Use the GROSS and NET methods to account for all sales

On 3/15/2013 Nestle Inc. sold $1,500 worth of candy to dylan's candy bar, a candy store. Nestle Inc. offered dylan's candy bar the following terms: 2/10, n/30

*************Using GROSS method ****************

Record journal entries in 1), 2) and 3):

1) 3/15/2013

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________________________________________________

2) assume dylan's candy bar remitted payment to Nestle Inc. on 3/18/2013

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Make a partial income statement ending at gross profit

Nestle Inc. maintain a gross profit margin of 40%

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3)Assume dylan's candy bar remitted payment to Nestle Inc. on 3/31/2013

______________________________________________

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*********** Using NET method ************

Record journal entries in 1), 2) and 3):

1) 3/15/2013

________________________________________________

________________________________________________

2) assume dylan's candy bar remitted payment to Nestle Inc. on 3/18/2013

_______________________________________________

_______________________________________________

_______________________________________________

Make a partial income statement ending at gross profit

Nestle Inc. likes to maintain a net profit margin of 20% and has period expenses of $500

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3)Assume dylan's candy bar remitted payment to Nestle Inc. on 3/31/2013

___________________________________________________

___________________________________________________

___________________________________________________

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