Question 1 and 2 Assume the perpetual Inventory system is used.1) Green Company purchased merchandise inventory that cost $65,200 under terms of 3/10, n/30 and FOB shipping point.2) Green Company paid freight cost of $2,520 to have the merchandise delivered.3) Payment was made to the supplier on the inventory within 10 days.4) All of the merchandise was sold to customers for $96,400 cash and delivered under terms FOB destination with freight cost amounting to $1,720.What is the amount of gross margin that results from these transactions?Multiple Choice$94,444$90,204$30,636$31,436 The Wilson Company purchased $25,000 of merchandise from the Poole Wholesale Company. Willson also paid $1,800 for freight costs to have the goods shipped to its location. The company uses the perpetual Inventory system. Which of the following summarizes the effectsof the journal entries required to record these transactions for The Wilson Company? (Consider the effects of both business events.)Multiple ChoiceTotal debits to the inventory account would be $1,800.Transportation-in would be debited for $1,800.Total debits to the Inventory account would be $26,800.Total debits to the Inventory account would be $25,000.

Gross Margin An amount of margin determines after taking into the difference between sales revenue…

Assume the perpetual Inventory system is used. 1) Green Company purchased merchandise Inventory that cost $65,200 under terms of 3/10, n/30 and FOB shipping point. 2) Green Company paid freight cost of $2,520 to have the merchandise delivered. 3) Payment was made to the supplier on the Inventory within 10 days. 4) All of the merchandise was sold to customers for $96,400 cash and delivered under terms FOB destination with freight cost amounting to $1,720. What is the amount of gross margin that results from these transactions? Multiple Choice $94,444 $90,204 $30,636 $31,436

Assume the perpetual Inventory system is used. 1) Green Company purchased merchandise Inventory that cost $65,200 under terms of 3/10, n/30 and FOB shipping point. 2) Green Company paid freight cost of $2,520 to have the merchandise delivered. 3) Payment was made to the supplier on the Inventory within 10 days. 4) All of the merchandise was sold to customers for $96,400 cash and delivered under terms FOB destination with freight cost amounting to $1,720. What is the amount of gross margin that results from these transactions? Multiple Choice $94,444 $90,204 $30,636 $31,436

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

Question 1 and 2

Assume the perpetual Inventory system is used.
1) Green Company purchased merchandise inventory that cost $65,200 under terms of 3/10, n/30 and FOB shipping point.
2) Green Company paid freight cost of $2,520 to have the merchandise delivered.
3) Payment was made to the supplier on the inventory within 10 days.
4) All of the merchandise was sold to customers for $96,400 cash and delivered under terms FOB destination with freight cost amounting to $1,720.
What is the amount of gross margin that results from these transactions?
Multiple Choice
$94,444
$90,204
$30,636
$31,436

The Wilson Company purchased $25,000 of merchandise from the Poole Wholesale Company. Willson also paid $1,800 for freight costs to have the goods shipped to its location. The company uses the perpetual Inventory system. Which of the following summarizes the effects
of the journal entries required to record these transactions for The Wilson Company? (Consider the effects of both business events.)
Multiple Choice
Total debits to the inventory account would be $1,800.
Transportation-in would be debited for $1,800.
Total debits to the Inventory account would be $26,800.
Total debits to the Inventory account would be $25,000.

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