B. Dalton is a retailer of popular books. At the beginning of the day, the store had 171 copies of the new bestseller, Fear Street, in its inventory. During the day, 20 new copies were delivered to the shop. By close of business, only 7 copies remained in inventory. The purchase price of each book from the supplier is $3. In addition, the company pays $1 for shipping on each book. B. Dalton pays its associates a commission of 5% of the sales price of each book. These costs have remained consistent since the company began business. B. Dalton sells each book for $5.50. Which of the following statements is incorrect? Question 3 options: The company's total gross profit for the day is $276. The product cost per book is $4. The value of ending inventory reported on the company's balance sheet is $736. The 5% commission paid to its associates would be reported as an operating expense on the Income Statement. The gross profit per book is $1.50.

B. Dalton is a retailer of popular books. At the beginning of the day, the store had 171 copies of the new bestseller, Fear Street, in its inventory. During the day, 20 new copies were delivered to the shop. By close of business, only 7 copies remained in inventory. The purchase price of each book from the supplier is $3. In addition, the company pays $1 for shipping on each book. B. Dalton pays its associates a commission of 5% of the sales price of each book. These costs have remained consistent since the company began business. B. Dalton sells each book for $5.50. Which of the following statements is incorrect? Question 3 options: The company's total gross profit for the day is $276. The product cost per book is $4. The value of ending inventory reported on the company's balance sheet is $736. The 5% commission paid to its associates would be reported as an operating expense on the Income Statement. The gross profit per book is $1.50.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...

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