Question: I need help with question is correct answer and accounting Johnson Inc. sold inventory for $15,000 that had cost $10,000. Freight terms for the sale

I need help with question is correct answer and accounting

Johnson Inc. sold inventory for $15,000 that had cost $10,000. Freight terms for the sale were FOB destination, and the payment terms were 2/10, n/30. Johnson records sales transactions at the gross amount. Johnson paid freight costs of $500 in cash. The receivable was collected within the discount period. Based on this information alone, the amount of gross margin would be: a) $4,800 b) $5,200 c) $4,700 d) $5,500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Graded Assignment 3 - Chapters 5, 6, and 7 Question 5 of 12 - 130 III Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May....

need help with May 22 onwards Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $7,600;...

need help with May 31 -- COGS & inventory calculation. thanks!! Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May,...

help please First Choice Ltd.completed the following merchandising transactions in the month of May 2021. At the beginning of May, First Choice's ledger showed Cash $7,600, Accounts Receivable...

answer,, First Choice Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, First Choice's ledger showed Cash $9,200; Accounts Receivable $3,000;...

I need the blanks asap pls! Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May Oiper's ledger showed Cash \$7,800;...

Can you help me with this and explain it too please , thank you so much!!! Problem 5-3A (Part Level Submission) Presented here are selected transactions for Toth Company during September of the...

QUESTION 1 Brimmes Company sells office supplies. The company has a stated return policy of 1 0 days from the date of sale. Management estimates that returns will be 1 0 % of sales. Record the...

need help with the May 9 journal entry credits i have tried: DR 4600 CR 4508 CR 92 12.3150 Current Attempt in Progress 1 3 4 8 9 Piper Specialty Store Ltd. completed the following merchandising...

Can you show how you get each answer please!! Thanks. Presented here are selected transactions for Toth Company during September of the current year. Toth Company uses a perpetual inventory system....

Describe variables sampling and how to use it to gather evidence in the audit process.

The selling price of 21 articles is equal to the cost price of 18 articles. Find the loss percent. 1. 14 % 2. 12, % 3. 16 % 4. 30% 5. 14 %

Reddened skin reflects Multiple Choice O dilated blood vessels, sending more blood to the dermis. O eating too many carrots. O inheriting extra melanin. O constricted blood vessels, sending more...

A U.S. bank issued a 30-day CD denominated in Canadian dollars (CA$) 5 million and converted the CAS to United States (US) dollars at a spot rate of $0.80/CA$. The bank engaged in a 30-day forward...