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    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #1

    Nov 27, 2007, 06:53 AM
    Accounting: Sold merchandise
    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
    qcmar24's Avatar
    qcmar24 Posts: 65, Reputation: 3
    Junior Member
    		  
    #2

    Nov 27, 2007, 12:08 PM
    Quote 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
    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.
    KrystalLea's Avatar
    KrystalLea Posts: 16, Reputation: 2
    New Member
    		  
    #3

    Dec 4, 2007, 07:32 AM
    Thank You

    Quote 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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