Question

# 1. Purchases, \$96​; Gross​ Sales, \$176​; Sales Returns and​ Allowances, \$15​; Sales​ Discounts, \$24​; Operating​ Expenses,...

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.

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.

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