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23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the jour- nal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system.

23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the jour- nal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 23

## Accounting and Financial Analysis Problem Set ### Questions: 15. **Cuperty Co.** has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and its gross profit rate? 16. **Stefan Page Company** reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses? 17. Identify the distinguishing features of an income statement for a merchandising company. 18. Identify the sections of a multiple-step income statement that relate to: (a) operating activities, and (b) nonoperating activities. 19. How does the single-step form of income statement differ from the multiple-step form? 20. What title does **Apple** use for gross profit? By how much did its 2019 gross profit change, and in what direction, when compared to 2018? 21. Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b) cost of goods sold will be shown. 22. Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods purchased. For each account, indicate whether it is added or deducted. 23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system. ### Diagram Explanation The table at the bottom outlines the components in determining the cost of goods sold. It includes columns for Purchases, Cost of Goods Available for Sale, Ending Inventory, and Cost of Goods Sold. - **Purchases:** Amounts to $100,000. - **Ending Inventory:** Recorded as $25,000. - **Cost of Goods Sold:** Comprises $120,000. Blank sections are indicated with '?' and are to be calculated based on the information provided.
Transcribed Image Text:## Accounting and Financial Analysis Problem Set ### Questions: 15. **Cuperty Co.** has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and its gross profit rate? 16. **Stefan Page Company** reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses? 17. Identify the distinguishing features of an income statement for a merchandising company. 18. Identify the sections of a multiple-step income statement that relate to: (a) operating activities, and (b) nonoperating activities. 19. How does the single-step form of income statement differ from the multiple-step form? 20. What title does **Apple** use for gross profit? By how much did its 2019 gross profit change, and in what direction, when compared to 2018? 21. Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b) cost of goods sold will be shown. 22. Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods purchased. For each account, indicate whether it is added or deducted. 23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system. ### Diagram Explanation The table at the bottom outlines the components in determining the cost of goods sold. It includes columns for Purchases, Cost of Goods Available for Sale, Ending Inventory, and Cost of Goods Sold. - **Purchases:** Amounts to $100,000. - **Ending Inventory:** Recorded as $25,000. - **Cost of Goods Sold:** Comprises $120,000. Blank sections are indicated with '?' and are to be calculated based on the information provided.
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