1. Goldway Inc sold merchandise to GMO Inc on account for $73,000 with credit terms of ?/15, n/45. The cost of the merchandise sold was $43,800. During the discount period, GMO Inc returned $3,000 of merchandise and paid its account in full (minus the discount) by remitting $69,300 in cash. Both Inc. use a perpetual inventory system. Which of the following is/are correct?

a. The net sales of the transactions to GMO Inc $69,300.

b. The amount of sales discounts is $700.

c. The missing discount percentage is 2%.

d. The goods returned from the GMO Inc will not change the cost of goods sold.

2. On January 1, 2020, Scott Enterprises inventory of 50,000. At December 31, 2020, Scott had the following account balances.

Freight-in	4,750
Purchases	509,000
Purchase discounts	6,000
Purchase returns and allowances	8,000
Sales revenue	840,000
Sales discounts	7,000
Sales returns and allowances	11,000

At December 31, 2020, Scott determines that its ending inventory is 65,000.

Which of the following is/are correct?

a. The amount of Net Sales is 822,000.

b. Cost of goods sold is 484,750.

c. Gross Profit is 355,250.

d. Total cost of goods available for sale is 495,000.

e. Net Income is 330,250 if the operating expense during 2020 is 25,000.