PLEASE SHOW ALL OF YOUR WORK! 1. Schmada, Inc sold a handbag for $2,000. The cos

Question

PLEASE SHOW ALL OF YOUR WORK! 1. Schmada, Inc sold a handbag for $2,000. The cost that Schmada, Inc incurred to produce the bag was $150. Make the journal entry to record this transaction assuming that Schmada, Inc uses a perpetual inventory system: (1 points) Date Account Title Debit Credit 2. Define the credit terms of 2/15 n/30. (1 point) (a) 15% discount if paid in 2 days total due in 30 days (b) 2% discount if paid in 15 days total due in 30 days (c) 30% discount if paid in 2 days total due in 15 days (d) 50% discount if paid 2 days total due in 30 days 3. Calculate the Gross Profit with the following information: (1 point) Net Sales: $100,000 Cost of Goods Available for Sale: $60,000 Cost of Goods Sold: $50,000 Gross Sales: $110,000 Gross Profit

Explanation / Answer

Ans:

Sales A/c Dr. 2000

To cost of goods sold. 150

To Profit & loss A/c. 1850

(Being goods sold )

Entry 2: .Cost of goods sold a/c . Dr. 150

To Inventory. 150

( Being stock balance adjusted)

Ans 2: option b

Reason: thatsththe pattern of writing discount where first figure indicate rate of discount and second period.And n indicates no discount.

Ans 3: gross Profit= 100000-50000 = $50000.

  

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