JUST EX 5/2

EX 5-1 Determining gross profit During the current year, merchandise is sold for $2,450,000. The cost of the merchandise sold is $1,519,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). C. OBJ. 1 Will the income statement necessarily report a net income? Explain. EX 5-2 Determining cost of merchandise sold OBJ.1 For a recent year, Best Buy reported revenue of $50,272 million. Its gross profit was $12,637 million. What was the amount of Best Buy's cost of merchandise sold? EX 5-3 Purchase-related transactions Locust Company purchased merchandise on account from a supplier for $34,900, terms 1/10, n/30. Locust Company returned $6,400 of the merchandise and received full credit. a. If Locust Company pays the invoice within the discount period, what is the amount OBJ. 2 of cash required for the payment? b. Under a perpetual inventory system, what account is credited by Locust Company t record the return? EX 5-4 Purchase-related transactions A retailer is considering the purchase of 250 units of a specific item fr suppliers. Their offers are as follows