1. A company has $550,000 in net sales and $193,000 in gross profit. This means its cost of goods sold equals

   1. $743,000.

   2. $550,000.

   3. $357,000.

   4. $193,000.

   5. $(193,000).

2. A company purchased $4,500 of merchandise on May 1 with terms of 210, n30. On May 6, it returned $250 of that merchandise. On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to. The cash paid on May 8 is

   1. $4,500.

   2. $4,250.

   3. $4,160.

   4. $4,165.

   5. $4,410.

Please answer each question with an explanation.