FNU ACG2003 2022 October Week 5 Homework Latest

ACG2003 Principles of Accounting

Week 5 Homework

Question 1During the current year, merchandise is sold for $874000. The cost of the merchandise sold is $480000. What is the amount of the gross profit?

Question 2During the current year, merchandise is sold for $754000. The Gross Profit is $301000. What is the amount of the Cost of Merchandise Sold?

The answer is 453,000.

Feedback

Question 3For the fiscal year, sales were $8160000, sales discounts were $140000, sales returns and allowances were $20000, and the cost of merchandise sold was $4380000. What was the amount of gross profit?

Question 4The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: selling, administrative, or other?

Advertising expense

Depreciation expense on store equipment

Insurance expense on office equipment

Interest expense on notes payable

Rent expense on office building

Salaries of office personnel

Salary of sales manager

Sales supplies used

Question 5Piedmont Company purchased merchandise on account from a supplier for $27000, terms 2/10, n/30. Piedmont Company returned $11000 of the merchandise and received full credit.If Piedmont Company pays the invoice within the discount period, what is the amount of cash required for the payment?

Question 6Determine the amount to be paid in full settlement of the invoice assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Merchandise Freight paid by seller Freight terms Returns and Allowances 145000 1000 FOB shipping point, 1/10,Net30 12000

Question 7Determine the amount to be paid in full settlement of the invoice assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Merchandise Freight paid by seller Freight terms Returns and Allowances 127000 3000 FOB destination, 1/10,Net30 26000