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

Quote:

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Originally Posted by KrystalLea

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

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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

Quote:

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Originally Posted by qcmar24

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.

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