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Question

1)

Gross Profit During the current year, merchandise is sold for $100,000 cash and $505,400 on account. The cost of merchandise

2)

Purchases Transactions Rolfes Company purchased merchandise on account from a supplier for $11,100, terms 2/10, n/30. Rolfes

3)

Inventory Shrinkage Pulmonary Companys perpetual inventory records indicate that $152,390 of merchandise should be on hand o

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Answer #1

1)

Gross profit = $100,000 + $505,400 - $423,800 = $181,600

2)

a.

Payment = ($11,100 - $2,300) - 2% = $8,624

b.

Credit purchases to record merchandise returned.

3)

Account Titles and Explanation Debit Credit
Cost of goods sold ($152,390 - $138,670) $13,720 -
Merchandise inventory - $13,720
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