Question

1. Purchases, $96​; Gross​ Sales, $176​; Sales Returns and​ Allowances, $15​; Sales​ Discounts, $24​; Operating​ Expenses, $55​; Net​ Sales, $137​; ​Freight-In, $9​; Beginning​ Inventory, $18​; Ending​Inventory, $8​; Net​ Purchases, $62​; Cost of Goods​ Sold, $ 81

a. The gross profit is __

​(Use parentheses or a minus sign to show a net​ loss.)

b. The net income or net loss is __

2.

​Jack's Online Service on April 30 has the following account​ balances:

Sales	$27,000
Sales Returns and Allowances	$10,000
Purchases	$16,000
Freightminus−In	$1,700
Purchase Returns and Allow.	$2,200
Purchases Discounts	$1,400

Net purchases for the period​ are:

3. The entry to record a payment on a $660 account within the 3​% discount period would include​ a: (Round your calculation to the nearest whole​ dollar.)

A. debit to Cash for $660.

B. debit to Accounts Payable for $640.

C. debit to Accounts Payable for $660.

D. credit to Purchases for $640.

Answer 1

1)
Net Sales = $ 137
Cost of Goods​ Sold = $ 81

a) Gross Profit = Net Sales - COGS = 137 - 81 = $ 56

Operating​ Expenses = $ 55​

b. The net income or net loss = Gross Profit - Operating Exp = 56 - 55 = $ 1

2.
Net Purchases = Purchases - Purchase Returns and Allow. - Purchases Discounts
Net Purchases = 16000 - 2200 - 1400
Net Purchases = $ 12,400

3.
This transaction will reduce accounts payable by $ 660, therefore entry will include C. debit to Accounts Payable for $660.