172. Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold is $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise returned that originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?
173. Based upon the following data, determine the cost of merchandise sold for August.
Merchandise Inventory August 1$ 75,560
Merchandise Inventory August 3196,330
Purchases373,880
Purchases Returns & Allowances14,760
Purchases Discounts10,900
Freight In4,135
174. Journalize the following merchandise transactions:
A.Sold merchandise on account, $10,700 with terms 2/10, net 30. The cost of the merchandise sold was $6,900.
B.Received payment less the discount.
A.Accounts Receivable10,700
B.Cash10,486
175. Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis returned $1,350 of the merchandise and received full credit. Travis Company paid for the merchandise within the discount period.
Under a perpetual inventory system, record all of the journal entries required for the above transactions.
a.Merchandise Inventory7,500
b.Accounts Payable1,350
c.Accounts Payable6,150
176. On March 25, 2010, Patton Company sold merchandise on account,$4,500.00. The applicable sales tax percentage is 7.25%. Record the transaction.
Journal
Date
Description
Post. Ref.
Debit
Credit