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.](https://tex.z-dn.net/?f=3%2C000-2%5C%25%5C%20of%5C%203000%5C%5C%5C%5C%3D3%2C000-%5Cfrac%7B2%7D%7B100%7D%5Ctimes%203000%5C%5C%5C%5C%3D3%2C000-0.02%5Ctimes%203000%5C%5C%5C%5C%3D3%2C000-60%5C%5C%5C%5C%3D%5C%242%2C940.)
<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.](https://tex.z-dn.net/?f=%5C%242%2C940-%5C%242%2C000%5C%5C%5C%5C%3D%5C%24940.)
<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.