Answered

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1) The company purchased $12,100 of merchandise on account under terms 3/10, n/30. 2) The company returned $1,600 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $18,200 cash. What is the gross margin that results from these four transactions

Sagot :

Zviko

Answer:

$8,910

Explanation:

Trading Account for the year

Sales                                                                                                 $18,200

Less Cost of Sales

Purchases                                                                         $12,100

Less Purchases Returns                                                  ($1,600)

Less Discounts Received ($12,100 x 10%)                       ($1,210)  ($9,290)

Gross Profit                                                                                         $8,910

Conclusion :

thus, the gross margin that results from these four transactions is $8,910.

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