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Answer #1

**Answer 5)**

**Cost of Goods Sold:** It is the price ofacquisition is products marketed and is calculated by deducting the valueof inventory at the finish from the Cost of goods easily accessible forsale.

Cost of Goods Sold = Cost of Goods obtainable for sale – endinginventory **.......... Equation 1**

**Also,**

Cost of goods easily accessible for sale = beginning inventory + cost ofgoods purchased

**By putting the worth of price of products obtainable for salein Equation 1 above we get**

Cost of Goods Sold = (beginning inventory + price of goodspurchased) - ending inventory

**Because of this the correct answer for price of items marketed isOption (c )**

**Cost of Goods Sold = beginning inventory + expense of goodspurchased - finishing inventory**

**Answer 6)**

**Calculation of Net amount tosettled the responsibility within the discounted period**

Gross worth of merchandise marketed by Cleese Company type of to LangstonCompany= $ 10,000

Value of damaged merchandise changed by Langston Company kind of toCleese Company= $ 1,000

Net amount payable by Langston Company(prior to discount) = (Gross value of products marketed – value of damagedproducts returned)

Net amount payable by Langston Company kind of (prior to discount) = $10,000 - $ 1,000

** =$ 9,000**

**Because, Langston Company kind of will certainly settled within discountedduration, amount payable through inspect is :**

**Net Amount Payable = Value of Sales-Value of SalesRerotate – Amount of discount**

Net Amount Payable= $ 10,000 - $ 1,000 - $ 270

Net Amount Payable = $ 8,730.

**Therefore the correct answer of the gives question isOption (c ) $ 8,730**

**Working Note: Calculation of amount ofdiscount**

**Terms of credit: 3/10, n/30**

The over regards to crmodify offered by Cleese Company type of impliesthat Langston Company kind of pays the entire amount within 10 days fromthe date of sale of merchandise, a discount of 3% of the Net amountpayable (before discount) will be permitted, Else Net amount payable(prior to discount) will need to be settled within 30 days from theday of sale of merchandise.** **