Determining Gross Profit During the current year, merchandise is sold for $979,000. The cost of the goods sold is $704,880. a. What is the amount of the gross profit? $ b. Compute the gross profit percentage (gross profit divided by sales). % C. Will the income statement always report a operating income? Determining Cost of Goods Sold For a recent year, TechMart reported sales of $35,834 million. Its gross profit was $8,959 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.) million Chart of Accounts Monet Paints Co. is a newly organized retail business with a list of accounts arranged in alphabetical order, as follows: Assign account numbers and specify whether each account would appear on the balance sheet or income statement. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, and so on); the second digit is to indicate the subclassification (11 for current assets, and so on); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Inventory, 115 for Estimated Returns Inventory, and so on). Note: If an account would not appear on either the Balance Sheet or the Income Statement, select "N/A". Account Financial Statement Major Classification Possible Account Number Accounts Payable Accounts Receivable Accumulated Depreciation Office Equipment Accumulated Depreciation-Store Equipment Advertising Expense Cash Common Stock Cost of Goods Sold Customer Refunds Payable Delivery Expense Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Dividends Estimated Returns Inventory Insurance Expense Interest Expense Interest Revenue Inventory Land Miscellaneous Administrative Expense Miscellaneous Selling Expense Purchase-Related Transactions The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. Cash Accounts Payable 150 (3) 1.980 (1) 13,860 (2) (4) 11,880 (4) 11,880 Inventory (1) 13,860 (3) 1,980 (2) 150 a. Describe each transaction. 1. 2. 3. 4. b. Determine the invoice amount of the merchandise that was returned in (3). Purchase-Related Transactions Stylon Co., a women's clothing store, purchased $27,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $3,800, receiving a credit memo. a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank. C. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank. d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank. lll