Financial accounting A retailer purchases an item for $100 and sells it at a priceof $175.a. What is the margin?b. What is the retail margin as a percentage of cost and what isthe retail margin as a percentage of the selling price?

Step 1:a. The margin is calculated as follows: Margin = Selling price - Purchase cost =…

Answered: A retailer purchases an item for $100…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 1DQ: What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts?...

See similar textbooks

Similar questions

General Accounting
What is the wholesale price of an item, if the retail price is $104.37 and the amount of markup is $33.37? The wholesale price is $
The price a business pays for goods it purchases to sell is called: A. markup B. purchase price C. cost of merchandise
Cost of goods sold is given by: Select one: a. Net Purchases + beginning inventory - ending inventory. b. Net purchases + ending inventory - beginning inventory. c. Beginning inventory + accounts payable - net purchases. d. Beginning inventory - net purchases + ending inventory.
Compute cost of goods sold using the following information. Merchandise inventory, beginning Cost of merchandise purchased Merchandise inventory, ending $12,200 45.200 18,200 Cost of Goods Sold is Computed an Cost of goods sold $ Heip have t Subit
Setting a price on perishable items does not include: Group of answer choices A. Calculating a selling price per day B. Determining number of units available for sale C. Calculating total selling price D. Calculating total cost
The gross margin estimation method estimates the cost of goods sold by multiplying the costs to sales ratio by purchases. O multiplying the sales revenue by the inventory turnover ratio. multiplying the cost of goods available by the gross margin percentage. O multiplying the sales revenue by cost-to-sales ratio.
Sub. Account
6. The formula for calculating the selling price (or retail price) of an item when the Total Purchase Price is known is as follows. Selling Price = Total Purchase Price 100% − Sales Tax Rate True or False?
the way to adjust purchases in order to arrive at the cost of sales figure is to ?
Mar. Stellar Stores purchases $8,500 of merchandise for resale from Blossom Wholesalers, terms 2/10, n/30, FOB shipping point. The correct company pays $135 for the shipping charges. Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Blossom gives Stellar a 3 $1,000 credit on its account. Stellar Stores purchases an additional $11,500 of merchandise for resale from Blossom Wholesalers, terms 2/10, n/30, 21 FOB destination. 22 The correct company pays $155 for freight charges. Stellar returns $300 of the merchandise purchased on March 21 because it was damaged. Blossom gives Stellar a $300 23 credit on its account. 30 Stellar paid Blossom the amount owing for the merchandise purchased on March 1. 31 Stellar paid Blossom the amount owing for the merchandise purchased on March 21. Additional information: Mar. Blossom's cost of the merchandise sold to Stellar was $3,800. 1 Blossom's cost of the merchandise returned by Stellar was $447. As the…
Select the correct choice that completes the sentence below. The cost of an item if the full amount had been paid at the time of sale is called the O A. down payment price O B. installment price O C. total price O D. cash price

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS

A retailer purchases an item for $100 and sells it at a price of $175. a. What is the margin? b. What is the retail margin as a percentage of cost and what is the retail margin as a percentage of the selling price?