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Problem 2- Merchandising and Multi-Step Income Statement (11 Marks)...

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Problem 2- Merchandising and Multi-Step Income Statement (11 Marks) During the year ended December 31, 2017, Sleep Sets Inc, a retail chain, sells 102 designer sheet sets for $200 cash per set; these sheet sets cost the company $70 a set to buy. The company also sells T,000 basic sheet sets for $50 cash per set; these sheet sets cost the company $25 to buy.During the year, 10 of the designer sheet sets were returned and the company refunded the customers' money. Other operating expenses for the company total $10,000. What is the journal entry (or entries) required to record the customer return? (2 Marks) Prepare a multi-step income statement for internal purposes. Show all calculations. Ignore income taxes. (7 Marks) Calculate the company's gross profit percentage (1 Mark) Sleep Set's inventory account had a balance of $5,700 at the end of last year andis now $7,900 on December 31, 2017. Calculate the inventory turnover. (1 Mark) a. b. c. d. Use the space below & on the next page for response*

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