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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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