38,39

Chapter 5: Accounting Systems d. $29,400 35. During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of the merchandise sold is $157,400. What is the amount of the gross profit? $201,850 36. Briefly explain how a business is to determine the amount of "inventory shrinkage". To determine the amount of "inventory shrinkage" a business will physically count the stock and determine its value, then subtract the value of the stock from the inventory cost. 37. If a transaction does not fit" into a special journal, where is the transaction recorded? The General Journal 38. A customer purchased merchandise with the terms 3/10, n30 and received an invoice dated on May 2. 2016 for $24,000. The merchandise arrived on May 5, 2016. How much should the customer pay if they pay the invoice on May 8, 2016? 39. SAME SCENARIO AS ABOVE, except the invoice is to be paid on May 14,2016 40. Regarding the same transaction as in question #38. If the terms were 3/10, N30 ROG. a. What does the ROG stand for? Receipt of Goods