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×ve Emily\'s Greenhouse Cor ? Oetomheducation.com/hm.tpx ps CALC HELP ) LIVE ACC

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Question

×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 8

Explanation / 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%