178. A company reported the following information for the month of July:
Sales discounts……………………….1,235
Sales returns and allowances………… 2,840
Cost of goods sold…………………… 33,975
Required: Calculate this company's gross profit.
179. A company reported the following information for the month of July:
Net Sales……………………………… $57,500
Cost of goods sold…………………… 33,200
Required: Calculate this company's gross margin ratio.
180. The following information is for Barrel and its competitor Crate.
Year 1 Year 2 Year 1 Year 2
Net sales $347,850$365,418$579,750$664,395
Cost of sales 121,747 146,167 318,862 312,265
Required:
1. Calculate the dollar amount of gross margin and the gross margin ratio to the nearest percent, for each company for both years.
2. Which company had the more favorable ratio for each year?
3. Which company had the more favorable change in the gross margin ratio over this 2-year period?
181. A company that uses the perpetual inventory system purchased $8,500 of merchandise on March 25 with credit terms of 2/10, n/30. The invoice was paid in full on April 4. Prepare the journal entries to record the transactions on March 25 and April 4.