Question

During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follows:Jan. 6 Sold goods for $50 to Wizard Inc. with terms 2/30, n/60. The goods cost Solitare $60.6 Sold goods to Spyder Corp. for $50 with terms 5/10, n/30. The goods cost Solitare $50.14 Collected cash for the amount due from Wizard Inc.Feb. 28 Collected cash for the amount due from Spyder Corp.Required:Compute the total revenue Solitare would report over the two months. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Answer:

The total revenue Solitare would report over the two months is $99 with a gross loss of $11.74

Explanation:

Particulars                                                  Amount ($)

Sales (January & February)

- Wizard Inc                                                     $50

- Spyder Corp                                                 $50

Less: Discount allowed to Wizard Inc           $1          ($50 * 2%)

Net Sales                                                         $99

Less: Cost of goods sold (60.6+50.14)          $110.74

Gross Loss                                                       $11.74