A company had net sales of $340,500, its cost of goods sold was $257,000, and its net income was $13.750. The company's gross margin ratio equals 24.5% True or False True 1 False Chapter 4 - Homework Purchase returns refer to merchandise a buyer purchases but then returns to the seller. True or False points True False False Purchase allowances refer to merchandise a buyer acquires but then returns to the seller. True or False points True False Print Purchase allowances refer to a price reduction (allowance) granted to a buyer of defective or unacceptable merchandise. 9 True or False points True False False eBOOK References Credit terms of 2/10, 1/30 imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date. Otherwise, the 10 amount is due in 30 days True or False True False