The BEV Toy Shop purchased 50 wagons at $45 per wagon less a 40% trade discount on May 8. The invoice had terms of 3/10, 2/20, N/30. On May 18, the shop sent a check for an amount that gave it a credit for ½ the balance due. On May 31, the remaining balance was paid. The shop expects a profit of 30% of cost and 15% of cost for operating expenses. From May until the end of September, the shop sold 40 wagons at its regular markup. From September through December, the remaining wagons were sold with a 35% markdown price. It is your task to determine the following, remembering to show and label all calculations: The total cost of the wagons before any discount was taken; the net cost after the trade discount. The amount of remittance to the nearest cent on May 18. The amount of remittance to the nearest cent on May 31. The total cost and individual cost to the nearest cent per wagon after all discounts. The amount saved by making the two payments. The breakeven point to the nearest cent for all wagons. The regular list price per wagon rounded to the nearest cent. The reduced list price per wagon rounded to the nearest cent. The total revenue received from the sale of all wagons. The total amount of operating profit or loss and the percent of cost this amount was (to the nearest tenth percent.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...

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The BEV Toy Shop purchased 50 wagons at $45 per wagon less a 40% trade discount on May 8. The invoice had terms of 3/10, 2/20, N/30. On May 18, the shop sent a check for an amount that gave it a credit for ½ the balance due. On May 31, the remaining balance was paid. The shop expects a profit of 30% of cost and 15% of cost for operating expenses. From May until the end of September, the shop sold 40 wagons at its regular markup. From September through December, the remaining wagons were sold with a 35% markdown price. It is your task to determine the following, remembering to show and label all calculations:

The total cost of the wagons before any discount was taken; the net cost after the trade discount.
The amount of remittance to the nearest cent on May 18.
The amount of remittance to the nearest cent on May 31.
The total cost and individual cost to the nearest cent per wagon after all discounts.
The amount saved by making the two payments.
The breakeven point to the nearest cent for all wagons.
The regular list price per wagon rounded to the nearest cent.
The reduced list price per wagon rounded to the nearest cent.
The total revenue received from the sale of all wagons.
The total amount of operating profit or loss and the percent of cost this amount was (to the nearest tenth percent.

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