MBA 5100 - Quiz 4 and 5 Questions and Answers 100% Correct.

MBA 5100 - Quiz 4 and 5 Questions and Answers 100% Correct. Which of the following items is subtracted from sales to arrive at net sales? sales returns and allowances A sales invoice included the following information: merchandise price, $8,000; tems 3/10, n/eom. Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash received by the seller? $6,790 8,000 - 1,000 = 7,000 7,000 * 0.03 = 210 7,000 - 210 = 6,790 The difference btw sales and cost of goods sold for a retail business is ____. gross profit Which of the following is the formula to calculate gross profit percent? (Sales - COGS)/Sales In credit terms of 1/10, n/30, the 10 represents the ____. Number of days in the discount period Galaxy Inc. had the following merch transactions in October. Purchases - $80,000 Purchase returns - $8,000 Purchase discounts - $7,200 Transportation in - $3,000 What is the total cost of merch purchased for Galaxy Inc? $67,800 (80,000 - 8,000 - 7,200 + 3,000) Calculate the markup percent if sales are $86,972 and COGS is $55,150. 57.7% 86,972 - 55,150 = 31,822 31,822/55,150 = 0.577 = 57.7% When purchases of merch are made from cash, under the perpetual inventory system, the transaction _____. increases merch inventory, decreases cash Net sales is calculated by ___. subtracting sales returns from total sales Which of the following is not considered when figuring net purchases? - purchases - purchase terms - purchase discounts - COGS COGS