A department store paid $41.86 for a salad bowl Overhead expense is 13% of the regular selling price and profit is 28% of the regular selling price. During a clearance sale, the set was sold at a markdown of 34%. What was the operating profit or loss on the sale?

A department store paid $41.86 for a salad bowl Overhead expense is 13% of the regular selling price and profit is 28% of the regular selling price. During a clearance sale, the set was sold at a markdown of 34%. What was the operating profit or loss on the sale?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

A department store paid $41.86 for a salad bowl Overhead expense is 13% of the regular selling price and profit is
28% of the regular selling price. During a clearance sale, the set was sold at a markdown of 34% What was the
operating profit or loss on the sale?
The operating
was S
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places
as needed.)
W

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The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
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