1) What is gross profit for a merchandiser calculated as?

a) net sales - cost of goods sold

b) gross sales - cost of goods sold

c) net sales - merchandise inventory

d) gross sales - merchandise inventory

2) On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount we would credit to cash if we pay this invoice on August 12?

a) $1,000

b) $998

c) $990

d) $980