Question
caluclate, sales reveune - sales and return allowence - sales discount - net sales - cost of goods sold - gross profit for the following
caluclate, sales reveune - sales and return allowence - sales discount - net sales - cost of goods sold - gross profit for the following information
The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms 2/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31.
a. | Amalgamated sold merchandise to American Fashions at a selling price of $310,000. The merchandise had cost Amalgamated $207,000. |
b. | Two days later, American Fashions complained to Amalgamated that some of the merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $4,500 to American Fashions. |
c. | Just three days later, American Fashions paid Amalgamated, which settled all amounts owed. |
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