Hi expart Provide solution Rice Co. sold for $12,000 inventory that had cost $8,000. Freightterms for the sale were FOB destination and payment terms were1/10, n/30. Rice records sales transactions at the gross amount.Rice paid freight costs of $400 in cash. The receivable was collectedwithin the discount period. Based on this information alone, theamount of gross margin would be:a. $3,480b. $3,880c. $3,600d. $4,000

Step 1: Define Discount PeriodDiscount periods are the duration the seller gives in days from the…

Answered: Rice Co. sold for $12,000 inventory…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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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?
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MAKE THE NECCESSARY JOURNAL ENTRIES FOR THE FOLLOWING TRANSACTIONS... 1)Merchandise acquired cost is 114.000 +10 % VAT. Freight In was 6.000 TL +10% VAT Paid by the vendor. Purchase is completed by endorsing a check. 2) Machinary is purchased for 326.000 TL + %10 VAT, Note is endorced for purchase . Transportation and Installations invoice is 94.000 TL + %10 VAT half paid by check balance is on account. 3) Merchandise sold for 64.000 USD (rate 7.05 TL/ USD) + 10% VAT received note for sale. VAT paid cash. Cost of good Sold is 235.000 TL 4) Bank Credit Memorandum states that , 95.000 TL issued check is collected from the Bank. 5) 24 month rent contract, Starting 1st April 2020 is signed for 384.000 TL. Prepayment is made by half check and half note issued, 6) 25.000 USD is paid (cash) by the customer for USD Merchandise sale. Rate is 7.15 TL/USD. 7) Customer transferred 85 .000 TL to the Bank, to close the open account 8) Customer ordered to purchase 270.000 TL + %10 VAT Merchandise .…
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