Answer: $3,826
Explanation:
Discount received on terms 2/10 = (Purchase value – Cost of merchandise returned) x Discount Rate
= $4,000 - $300 x 2%
= $3,700 x 2%
= $74
if the company paid the invoice within the discount period, Then the total cost of this merchandise
Total cost of merchandise = Value of merchandise purchased– Cost of merchandise returned + Transportation Costs - Amount of discount received
= $4,000 - $300 + $200 - $74
= $3,826
<h2><em><u>Answer:</u></em></h2><h2><em><u>Answer:Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales)</u></em></h2>
Answer:
The Journal entries are as follows:
(a) On June 1,
Cash A/c Dr. $5,830
To common stock $5,830
(To record the issue of common stock for cash)
(b) On June 2,
Equipment A/c Dr. $1,550
To accounts payable $1,550
(To record the purchase of equipment on account)
(c) On June 3,
Rent expense A/c Dr. $560
To cash $560
(To record the rent expense)
(d) On June 12,
Accounts receivable A/c Dr. $510
To Welding service revenue $510
(To record the welding service revenue)