Calculate the amount of gross profit GOT Jewelersuses the perpetualinventory system. On April 5, GOT soldmerchandise for $110,000 to a customer onaccount with terms 3/10, n/30. The cost ofgoods sold (COGS) was $42,000. On April14, GOT received payment from thecustomer.Calculate the amount of gross profit.

Explanation of Perpetual Inventory System: A perpetual inventory system continuously tracks…

Answered: GOT Jewelers uses the perpetual…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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On June 16, 2013, llano Co. sold merchandise to PascualCo. for 6k terms 2/10, n/30. Shipping costs were 600. Pascual Co, received the goods and llano Co.'s invoice on June 17. On June 24, Pascual Co. sent the payment to llano Co., which llano Co. received on June 25. Both llano Co. and Pascual Co. use the periodic inventory system. The following are several arrangements regarding the shipping costs: a. Shipping terms are FOB shipping point, freight prepaid. Llano paid the shipping costs on June 16 and added the 600 cost to the invoice sent to Pascual. Pascual remitted 6480 on June 24.: 1. Prepare the entries for llano Co. to record sale and freight payment and the cash receipt. 2. Prepare the entries for Pascual Co. to record the purchase, (with shipping cost added to the invoice from Ilano) and the cash remittance b. Shipping terms are FOB destination, freight collect. Pascual Co. paid the shipping costs on June 17 and deducted the 600 from the amount owed to llano Co. A copy…

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GOT Jewelers uses the perpetual inventory system. On April 5, GOT sold merchandise for $110,000 to a customer on account with terms 3/10, n/30. The cost of goods sold (COGS) was $42,000. On April 14, GOT received payment from the customer. Calculate the amount of gross profit.