On July 1, Rustic Company, a retailer, ordered merchandise from vendor Dcor Services. The goods were...
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On July 1, Rustic Company, a retailer, ordered merchandise from vendor Décor Services. The goods were listed in Décor's catalog at a price of $2,875 and Rustic was able to negotiate a 20% trade discount and payment terms of 1/10, n/30. Décor had originally purchased the sold items for $1,100. On July 5th, the order was shipped FOB shipping point with $200 freight collect and arrived at Rustic's location on July 7. On July 9, Rustic returned $700 of merchandise (originally purchased by Décor for $325). Rustic paid Decor the balance due on July 11th. Select the answer choice below that shows the gross profit reported by Décor Services for this transaction (round final answers to the nearest $1). A. $1,046 B. $484 C. $300 D. $809 E. None of the answers provided are correct. On July 1, Rustic Company, a retailer, ordered merchandise from vendor Décor Services. The goods were listed in Décor's catalog at a price of $2,875 and Rustic was able to negotiate a 20% trade discount and payment terms of 1/10, n/30. Décor had originally purchased the sold items for $1,100. On July 5th, the order was shipped FOB shipping point with $200 freight collect and arrived at Rustic's location on July 7. On July 9, Rustic returned $700 of merchandise (originally purchased by Décor for $325). Rustic paid Decor the balance due on July 11th. Select the answer choice below that shows the gross profit reported by Décor Services for this transaction (round final answers to the nearest $1). A. $1,046 B. $484 C. $300 D. $809 E. None of the answers provided are correct.
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Answer rating: 100% (QA)
Total Revenue Quantity Selling Price 1 7002875 2875 2175 2 Cost of Goods Sold COG... View the full answer
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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