Determining cost of merchandise sold OBJ. 1 For a recent year, Best Buy reported sales of $50,705 million. Its gross profit was $12,573 million. What was the amount of Best Buy’s cost of merchandise sold?

EX 5-3 Purchase-related transactions OBJ. 2 The Stationery Company purchased merchandise on account from a supplier for $28,900, terms 1/10, n/30. The Stationery Company returned $6,100 of the merchandise and received full credit.

a. What is the amount of cash required for the payment?

b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return?
EX 5-4 Purchase-related transactions OBJ. 2 A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offers are as follows:
Supplier One: $400 a unit, total of $100,000, 1/10, n/30, no charge for freight.
Supplier Two: $399 a unit, total of $99,750, 2/10, n/30, plus freight of $975.
Which of the two offers, Supplier One or Supplier Two, yields the lower price?
EX 5-5 Purchase-related transactions OBJ. 2 The debits and credits from four related transactions are presented in the following T accounts. Describe each transaction.
Cash Accounts Payable (2) 300 (3) 3,920 (1) 20,580 (4) 16,660 (4) 16,660 Merchandise Inventory (1) 20,580 (3) 3,920 (2) 300