Harton Company uses the perpetual inventory system. The company purchased $12,000 of merchandise from banks company under the terms 2/10, net/30. Barton paid for the merchandise within 10 days and also paid $495 freight to obtain the goods under terms of fob the shipping point. All of the merchandise purchased was sold for $15,000 cash. What is the amount of gross margin for this merchandise?

Harton Company uses the perpetual inventory system. The company purchased $12,000 of merchandise from banks company under the terms 2/10, net/30. Barton paid for the merchandise within 10 days and also paid $495 freight to obtain the goods under terms of fob the shipping point. All of the merchandise purchased was sold for $15,000 cash. What is the amount of gross margin for this merchandise?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
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