Q#9) On July 1, Rustic Company, a retailer, ordered merchandise from vendor Décor Services. The goods were listed in Décor's catalog at a price of $2,875 and Rustic was able to negotiate a 20% trade discount and payment terms of 1/10, n/30. Décor had originally purchased the sold items for $1,100. On July 5th, the order was shipped FOB shipping point with $200 freight collect and arrived at Rustic's location on July 7. On July 9, Rustic returned $700 of merchandise (originally purchased by Décor for $325). Rustic paid Decor the balance due on July 11th. Select the answer choice below that shows the gross profit reported by Décor Services for this transaction (round final answers to the nearest $1). A. $1,046 B. $484 C. $300 D. $809 E. None of the answers provided are correct.
Q#9) On July 1, Rustic Company, a retailer, ordered merchandise from vendor Décor Services. The goods were listed in Décor's catalog at a price of $2,875 and Rustic was able to negotiate a 20% trade discount and payment terms of 1/10, n/30. Décor had originally purchased the sold items for $1,100. On July 5th, the order was shipped FOB shipping point with $200 freight collect and arrived at Rustic's location on July 7. On July 9, Rustic returned $700 of merchandise (originally purchased by Décor for $325). Rustic paid Decor the balance due on July 11th. Select the answer choice below that shows the gross profit reported by Décor Services for this transaction (round final answers to the nearest $1). A. $1,046 B. $484 C. $300 D. $809 E. None of the answers provided are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q#9) On July 1, Rustic Company, a retailer, ordered merchandise from vendor Décor Services. The goods were listed
in Décor's catalog at a price of $2,875 and Rustic was able to negotiate a 20% trade discount and payment terms of 1/10, n/30.
Décor had originally purchased the sold items for $1,100. On July 5th, the order was shipped FOB shipping point with $200
freight collect and arrived at Rustic's location on July 7. On July 9, Rustic returned $700 of merchandise (originally purchased
by Décor for $325). Rustic paid Decor the balance due on July 11th.
Select the answer choice below that shows the gross profit reported by Décor Services for this transaction (round final answers
to the nearest $1).
A. $1,046 B. $484 C. $300 D. $809 E. None of the answers provided are correct.
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