What is the gross margin of this financial accounting question? Harper Corp. sold inventory for $15,000, which had cost$10,000. The freight terms for the sale were FOBdestination, and the payment terms were 2/10, n/30.Harper records sales transactions at the gross amount.Harper paid $500 in cash for freight costs. The receivablewas collected within the discount period.Based on this information alone, what is the grossmargin?

Step 1: Definition of Gross MarginGross Margin (also called Gross Profit) is the difference between…

Answered: Harper Corp. sold inventory for…

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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Smith company sold inventory that cost $5000 for $9000 cash. Freight cost was $600 paid in cash.The Freight term was FOB destination. Based on this information, what would the net income/ gross margin be?
What was the cost of the inventory on this financial accounting question?
What is the total cost of the inventory of this financial accounting question?
Stefan Company provided the following data for the current year, the first year of operations. a. Purchase of merchandise at an invoice price of $4,750,000 excluding freight. Terms are 2 /10, n /30. b. Freight paid, $250,000. The freight is allocated to each purchase. c. Cash payment on purchases, $3,717,000, of which $1,617,000 was paid within the discount period. d. It is expected that all discounts on unpaid accounts payable will be lost. e. On December 31, one fifth of the merchandise remains on hand. Requirement: 1. Prepare journal entries to record the transactions using gross method and net method. 2. Compute the inventory and cost of sales under each method.
Crane's Market recorded the following events involving a recent purchase of merchandise: Received goods for $64000, terms 2/10, n/30. Returned $1000 of the shipment for credit. Paid $200 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $61940. $61740. $63200. O $61934.
Give me correct answer and explanation .f
Metlock's Market recorded the following events involving a recent purchase of inventory: Received goods for $78200, terms 2/9, n/30. Returned $1700 of the shipment for credit. Paid $700 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $74970. increased by $75670. increased by $77200. O increased by $75656. O O
Assume that Gallant Company uses a periodic inventory system and has these account balances: Purchases: $450,000, Purchase Returns and Allowances: $13,000, Purchase Discounts: $8,000, and Freight-In: $16,000. Determine net purchases and the cost of goods purchased.
Sheridan's Market recorded the following events involving a recent purchase of merchandise: Received goods for $54000, terms 1/10, n/30. Returned $1400 of the shipment for credit. Paid $200 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by O $52074. $52268. ○ $52274. ○ $52800.
Assume that Morgan Company uses a periodic inventory system and has these account balances: Purchases $450,000, Purchase Returns and Allowances $13,000, Purchase Discounts $9,000, and Freight-In $18,000. Also Morgan Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $730,000. Determine the amounts to be reported for cost of goods sold and gross profit. Then determine net purchases and cost of goods purchased.
What is Hamilton's gross profit percentage?

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