Exercise #1 and #2. Good feedback.

Exercise 1. Fragment Company is a wholesaler that sells merchandise in large quantities. Its catalog indicates a list price of $300 per unit on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more. The cost of shipping the merchandise is $7 per unit under terms FOB shipping point. If a customer purchases 100 units of this product, what is the amount of sales revenue that Fragment will record from this sale? Show calculations. Exercise 2. Fill in the blanks (a) through (g) for the Morrison Company for each of the income statements for years 1, 2, and 3. Morrison Company Income Statements For the years ended December 31 Year 1 Year 2 Year 3 Sales $7,500 $10,000 (f) Cost of goods sold Merchandise inventory (beginning) (a) 375 750 Total cost of merchandise purchases 2,400 3,625 4,875 Merchandise inventory (ending) (b) 750 625 Cost of goods sold 2,770 (d) 5,000 Gross profit (c) 6,750 5,200 Operating expenses 3,750 3,750 (g) Net income $ 980 (e) $2,500