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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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Answer:

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Balance in Caitlin’s capital account immediately after Paul’s admission = 131000-(75600-71000)*30%= $129160

6 0
3 years ago
The owner of Grandma's Applesauce is planning to retire after the coming year. She has to repay a loan of $50,000 plus 8 percent
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Answer:

Option (B) $5,000

Explanation:

Data provided in the question:

Repayment of Loan = $50,000

Interest = 8%

Cash flow             Probability

$65,000                    70%

$45,000                    30%

Tax rate = 0%

Now,

Interest on loan = 8% of $50,000

= $4,000

Expected value of cash flow = ∑[cash flow × Probability ]

= ( 0.7 × $65,000 ) + ( 0.3 × $45,000 )

= $45,500 + $13,500

= $59,000

The owner's expected cash flow after debt service

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= $59,000 - $4,000 - $50,000

= $5,000

Hence,

Option (B) $5,000

3 0
3 years ago
merchandise costing 1200 is sold for 2200 on term 2/30,n/60. If the customer pays within the discount period. Prepare the journa
spin [16.1K]

Answer:

The journal entries are as follows:

(a) Accounts receivables [$2,200 - 2%] A/c Dr. $2,156

             To Sales revenue                                              $2,156

(To record the sale)

(b) Cost of Goods Sold A/c Dr. $1,200

          To inventory                                $1,200

(To record the cost of goods sold)

(c) Cash A/c Dr. $2,156

       To Accounts receivables  $2,156

(To record payment within discount term)

3 0
3 years ago
Seeing a golden opportunity to raise revenue, the city of Boston levies a per ticket tax of $5 to be paid by the ticket buyer. B
Dvinal [7]

Answer:

TRUE

Explanation:

When supply is perfectly inelastic, the supply curve is vertical as shown in the attached plot. Thus, the tax that shifts the supply curve upward would have no effect on the equilibrium quantity or price paid by consumers. Since equilibrium quantity or price paid by consumer don't change there's no burden on them. However, no  team's owners would receive a lower after tax price and thus bearing the entire tax burden.

8 0
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In the month of October, Tran Incorporated had salaries of $15,000 for factory managers, $18,000 for financial managers, and $42
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Answer:

The correct answer is C.

Explanation:

Giving the following information:

$15,000 for factory managers

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To calculate the labor cost we need to separate between indirect and direct labor:

Indirect labor:

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Direct labor:

Factory workers= 98,000

Total labor cost= $113,000

7 0
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