Sold merchandise on account to Osmond Inc. for $40,000, terms 2/10, N/30.
Gross profit rate on this sale was 45%.

Please help with this entry ?
It does not say when was paid, in order to figure the term
And what do I do with the 45% ?

Thank you

Sold merchandise on account to Osmond Inc. for $40,000, terms 2/10, N/30.
Gross profit rate on this sale was 45%.

Please help with this entry ?
It does not say when was paid, in order to figure the term
And what do I do with the 45% ?

Thank you
you just need to record the sale and the cost of the goods sold
Dr.Accounts receivable... 40,000
Cr.Sales... 40,000
sold mecrchandise credit terms 2/10,n/30
---------------------------------------------------------------
40,000 x .45= $18,000 this is your profit

Dr.Cost of goods sold... 22,000
Cr.Merchandise inventory... 22,000
to report the cost of goods sold.

Thank You


you just need to record the sale and the cost of the goods sold
Dr.Accounts receivable.............40,000
Cr.Sales.......................................... ...40,000
sold mecrchandise credit terms 2/10,n/30
---------------------------------------------------------------
40,000 x .45= $18,000 this is your profit

Dr.Cost of goods sold..........................22,000
Cr.Merchandise inventory.................................22,000
to report the cost of goods sold.