Accounting Help Needed..!!!?

1. Sandy Says

   1) On March 6, 2010, Ed’s Imports purchased merchandise from Watches Inc. with a list price of $31,000, terms 2/10, n/45. On March 10, Ed’s returned merchandise to Watches Inc. for credit. The list price of the returned merchandise was $6,400. Ed’s paid cash to settle the accounts payable on March 15, 2010.
   (a) What is the amount of the check that Ed’s must write to Watches Inc. on March 15?
   0.98*(31,000 – 6,400) = 24,108
   (b) How much would Ed’s pay for the merchandise purchased if the payment is not made until March 20, 2010?
   31,000 – 6,400 = 24,600
   2) Laura’s Clothing Co. uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Laura’s records for the year 2009: beginning balance in inventory, $24,900; purchases, $306,400; purchase returns and allowances, $12,400; sales, $720,000; sales returns and allowances, $6,370; transportation-in, $1,820; and operating expenses, $51,400. A physical count indicated that $24,800 of merchandise was on hand at the end of the accounting period.
   Questions: (Income statement)
   a) Net sales revenue? $720,000 – $6,370 = 713,630
   b) COGS
   beginning inventory $24,900
   + purchases $306,400
   - purchase returns and allowances $12,400
   + transportation-in $1,820
   - ending inventory $24,800
   = COGS 295,920
   c) Gross profit? 713,630 – 295,920 = 417,710
   d) operating expenses $51,400
   e) Net income 417,710 – 51,400 = 366,310

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