Ortiz Books, is a student co-op. Ortiz Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $153,470). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $604). c. Sold merchandise (costing $9,090) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $202) after month-end from sales made during the month. $ 277,750 1,610 20,200 10,100 1,120 710 equired: Compute Net Sales and Gross Profit for Ortiz Books. Answer is complete but not entirely correct. Net Sales $294,510 Gross Profit $ 131,1440
Ortiz Books, is a student co-op. Ortiz Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $153,470). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $604). c. Sold merchandise (costing $9,090) to a customer on account with terms n/30. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $202) after month-end from sales made during the month. $ 277,750 1,610 20,200 10,100 1,120 710 equired: Compute Net Sales and Gross Profit for Ortiz Books. Answer is complete but not entirely correct. Net Sales $294,510 Gross Profit $ 131,1440
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Ortiz Books, is a student co-op. Ortiz Books uses a perpetual inventory system. The following transactions (summarized)
have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $153,470).
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund
(original cost of merchandise $604).
c. Sold merchandise (costing $9,090) to a customer on account with terms n/30.
d. Collected half of the balance owed by the customer in (c).
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.
f. Anticipate further returns of merchandise (costing $202) after month-end from sales made during the
month.
$ 277,750
1,610
20,200
10,100
1,120
710
Required:
1. Compute Net Sales and Gross Profit for Ortiz Books.
Answer is complete but not entirely correct.
Net Sales
$294,510
Gross Profit
$131,144
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