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g100num [7]
3 years ago
8

Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount

will be reported on the income statement as net sales and as gross profit?
Business
1 answer:
madam [21]3 years ago
7 0

Answer:

The amount that will be reported on the income statement as net sales is <u>$2,940</u> and as gross profit is <u>$940</u>.

Explanation:

Given:

Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60.

If the customer pays within the discount period.

Now, to find the amount reported on the income statement as net sales and as gross profit.

Cost of merchandise = $2,000.

As, merchandise sold for $3,000.

So, to get the net sales we deduct the discount:

Merchandise on terms 2/30, n/60.

3,000-2\%\ of\ 3000\\\\=3,000-\frac{2}{100}\times 3000\\\\=3,000-0.02\times 3000\\\\=3,000-60\\\\=\$2,940.

<u><em>Thus, the net sales is $2,940</em></u>.

Now, to get the gross profit we subtract cost of merchandise from net sales:

\$2,940-\$2,000\\\\=\$940.

<em><u>Hence, gross profit is $940.</u></em>

Therefore, the amount that will be reported on the income statement as net sales is $2,940 and as gross profit is $940.

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While most of this debate has focused on the automotive manufacturing sector, there is a wider question that needs to be answered. This relates to the issue of whether it is feasible for an advanced economy to grow and prosper without a manufacturing sector?

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3 years ago
Cooperton Mining just announced it will cut its dividend from $4.01 to $2.57 per share and use the extra funds to expand. Prior
mina [271]

Answer:

$34.35

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Explanation:

Computation for the share price to expect after the announcement

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Ke = [ D1 / P0 ] +g

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