CSO 2.1

235 236 16. Gross profit is equal to 237 238 A. sales plus selling expenses 239 B. sales less cost of merchandise sold 240 C. sales less selling expenses 241 D. sales plus cost of merchandise sold 242 243 244 17. Calculate the gross profit for Jefferson Company based on the following: 245 246 Sales 764,000 247 Selling Expenses 42,500 248 Cost of Merchandise Sold 538,000 249 250 A. 183,500 251 B. 226,000 252 C. 721,500 253 495,500 254 255 Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. Using the net method, the 256 18 journal entry to record the sale would include a 257 258 A. debit to Sales Discounts for $100 259 B. debit to Accounts Receivable for $4,880 260 C. credit to Sales for $4,900 261 D. debit to Cash for $5,000 262 266 267 19. When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a 268 269 A. Dr. Cash 270 Cr. Merchandise Inventory 271 B. Dr. Sales 272 Cr. Accounts Payable 273 C. Dr. Cash 274 Cr. Sales 275 D. Dr. Merchandise Inventory 276 Cr. Cash 277 278 A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/30, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is 279 20. the amount of cash that should be received by the seller? 280 281 A. 11,500 282 B. 11,385 283 C . 10,480 284 D . 12,285 285