3. Cost of products marketed is computed from the complying with equation: a. sales - cost of goods purchased + start inventory - finishing inventory. b. beginning . start inventory + ending inventory - expense of products purchased. c. start inventory + price of goods purchased - finishing inventory. d. beginning inventory - price of items purchased + finishing inventory. 0 Cleese Company kind of sells merchandise on account for $10,000 to Langston Company kind of with crmodify regards to 3/10, n/30. Langston Company kind of retransforms $1,000 of merchandise that was damaged, along with a examine to settle the account within the discount period. What is the amount of the check? a. $8,700 b. $8,800 c. $8,730 d. $9.700


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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.