1. BE.05-01.ALGO (Algorithmic) Gross Profit During the current year, merchandise
ID: 2333757 • Letter: 1
Question
1. BE.05-01.ALGO (Algorithmic) Gross Profit During the current year, merchandise is sold for $150,500 cash and $653,400 on account. The cost of the goods sold is $522,500. What is the amount of the gross profit? 2. BE.05-02.ALGO (Algorithmic) Purchases Transactions Barans Company purchased merchandise on account from a supplier for $8,800, terms 2/10, /30. Barans returned $1,900 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Barans Company to record the return? 3. BE.05-03.ALGO (Algorithmic) Sales Transactions Joumalize the following merchandise transactions: a. Sold merchandise on account, $10,100 with terms 1 /10, n/30. The cost of the goods sold was $6,050 Sale Cost b. Received payment less the discount. c. Refunded $470 to customer for defective merchandise that was not returned.Explanation / Answer
1) Gross profit = Sales-Cost of goods sold
= (150500+653400)-522500
Gross profit = $281400
2) a) Cash required for payment = (8800-1900)*98% = $6762
b) Account debited = Account payable
3) Journal entry :
Date account and explanation debit credit Account receivable 10100 Sales revenue 10100 (To record Sales) Cost of goods sold 6060 Merchandise inventory 6060 (To record cost of goods sold) Cash (10100*99%) 9999 Sales discount 101 Account receivable 10100 (To record received payment) Account receivable 470 Cash 470 (To record amount refund)Related Questions
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