×ve Emily\'s Greenhouse Cor ? Oetomheducation.com/hm.tpx ps CALC HELP ) LIVE ACC
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×ve Emily's Greenhouse Cor ? Oetomheducation.com/hm.tpx ps CALC HELP ) LIVE ACCT Questions 1-4 (of PB6- 3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit The following information applies to the questions dlisplayed below Larry's Building Supplies (BS) Is a local hardware store. LBS uses a perpetual inventory system T following transactions (summarized) have been selected for analysis he a. Sold merchandise for cash (cost of merchandise $385.350 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash relund (original cost of merchandise $5,900) c. Sold merchandise (costing $12.600) to a customer on account with terms 210, n/30 d. Collected half of the balance owed by the customer in (c) within the discount period e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid 9,000 21000 10.290 2.950 p86-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profe Percentage ILO 6-4, LO 6-5 Section Break Type here to search ? 2 3 4 5 6 8Explanation / Answer
1)Sales Revenue :800000+21000=821000.
Net sales revenue :
Sales Discount :Amount paid *%discount]
[21000*1/2]*.02
10500*.02 = 210
Sales return and allowance :9000+2950+210= 12160
net sales revenue :821000-12160 = 808840
C)cost of goods sold: 385350-5900+12600=392050
Gross margin : net sales -cost of goods sold
= 808840-392050
= 416790
2)Gross profit % =Gross profit /net sales
= 416790/808840
= .515 or 51.5%
3)Gross profit :40000-28000=12000
Gross profit increase by $ 12000
Gross profit % :[416790+12000]/[808840+40000]
= 428790/848840
= .505 or 50.5%
Gross profit % decrease to 50.5%
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