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The gross profit rate is computed by dividing gross profit 1. A company shows the following balances: Sales $1,000,000 Sales Returns and Allowances 180,000 Sales Discounts 20,000 Cost of Goods Sold 560,000 What is the gross profit percentage? a. 56% b. 70% c. 44% d. 30% 2. The gross profit rate is computed by dividing gross profit by a. cost of goods sold. b. net income. c. net sales. d. sales. 3. In terms of liquidity, mer ...

Other / Other 01 Apr 2016

The gross profit rate would be Use the following information for questions 1–2. Financial information is presented below: Operating Expenses $ 45,000 Sales Returns and Allowances 13,000 Sales Discounts 6,000 Sales 150,000 Cost of Goods Sold 67,000 1. Gross profit would be a. $77,000. b. $64,000. c. $70,000. d. $83,000. 2. The gross profit rate would be a. .535. b. .489. c. .511. d. .553. Use the following informat ...

Other / Other 01 Apr 2016

Waller Brothers Supply uses a periodic inventory system Waller Brothers Supply uses a periodic inventory system. During May, the following transactions and events occurred. May 13 Purchased 6 motors at a cost of $44 each from Ord Company, terms 1/10, n/30. The motors cost Ord Company $25 each. May 16 Returned 1 defective motor to Ord. May 23 Paid Ord Company in full. Instructions Journalize the May transactions for Waller Brothers. Yo ...

Other / Other 01 Apr 2016

The operating cycle of a merchandiser 1. A merchandising company using a perpetual system will make a. the same number of adjusting entries as a service company does. b. one more adjusting entry than a service company does. c. one less adjusting entry than a service company does. d. different types of adjusting entries compared to a service company. 2. In preparing closing entries for a merchandising company, the Income Summary accou ...

Other / Other 01 Apr 2016

Ord Company uses a perpetual inventory system Ord Company uses a perpetual inventory system. During May, the following transactions andevents occurred.May 13 Sold 6 motors at a cost of $44 each to Waller Brothers Supply Company, terms 1/10, n/30. The motors cost Ord $25 each. May 16 One defective motor was returned to Ord. May 23 Received payment in full from Waller Brothers. Instructions Journalize the May transactions for Ord Compa ...

Other / Other 01 Apr 2016

Record the sale on the books of Erving Erving Company sold goods on account to Farley Enterprises with terms of 2/10, n/30. The goods had a cost of $600 and a selling price of $900. Both Erving and Farley use a perpetual inventory system. Record the sale on the books of Erving and the purchase on the books of Farley. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Man ...

Other / Other 01 Apr 2016

Sanders Company’s income statement Presented here are the components in Sanders Company’s income statement. Determine the missing amounts. Cost of Gross Operating Net _Sales_ Goods Sold _Profit Expenses Income $75,000 (a) $40,000 (b) $17,000 (c) $56,000 $64,000 $48,000 (d) Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 01 Apr 2016

Journal entries on the books of Tri-State Carpet Company Prepare the necessary journal entries on the books of Tri-State Carpet Company to record the following transactions, assuming a perpetual inventory system (you may omit explanations): (a) Tri-State purchased $40,000 of merchandise on account, terms 2/10, n/30. (b) Returned $4,000 of damaged merchandise for credit. (c) Paid for the merchandise purchased within 10 days. Busin ...

Other / Other 01 Apr 2016

Cost of goods available for sale is computed 1. At the beginning of September, 2008, RFI Company reported Merchandise Inventory of $4,000. During the month, the company made purchases of $7,800. At September 31, 2008, a physical count of inventory reported $3,200 on hand. Cost of goods sold for the month is a. $600. b. $7,800. c. $8,600. d. $11,800. 2. At the beginning of the year, Midtown Athletic had an inventory of $400,000. Du ...

Other / Other 01 Apr 2016

Katie’s Catering Company generated revenues During October, 2008, Katie’s Catering Company generated revenues of $13,000. Sales discounts totalled $200 for the month. Expenses were as follows: Cost of goods sold of $7,000 and operating expenses of $2,000. Calculate (1) gross profit and (2) income from operations for the month. Business Management Assignment Help, Business Management Homework help, Business Management ...

Other / Other 01 Apr 2016