How should correction of errors be reported in the financial statements?
Retail Planning and Buying: Exam #2 Study Guide 1. A fabric manufacturer offers the following discounts: 0.30% on orders of 550 to 870 square yards 3.50% on orders of 871 to 1,000 square yards 5.00% on orders of 1,001 or more square yards. A furniture store ordered 956 square yards of carpeting costing $6.38 per square yard. After the discount was deducted, how much was remitted to the manufacturer 2. Find the billed cost of a lamp that lists for $97 with discounts of 15.00% and 20.00%. 3. Find the billed cost of a television that has a list price of $1,500 with discounts of 35% and 10%. 4. The handbag buyer ordered 42 all-weather handbags that cost $276.00 each. A 15% cash discount is deducted. What amount is paid to the vendor 5. A mattress manufacturer offers the following range of discounts: 3.00% for purchases of 75 to 150 units, 4.00% for purchases of 151 to 200 units, and 5.50% for purchases of 201 or more units. A buyer purchases 134 mattresses listing for $1,600 each with 40% and 15% trade discounts. A 6% cash discount is offered. What amount does the buyer owe if all discounts are taken What is the dollar amount saved when the cash discount is taken 6. Calculate the discount and net payment dates for an invoice dated Mar. 23 with terms of 3/10, n/30. 7. Calculate the discount and net payment dates for an invoice dated Dec. 26 with terms of 3/10, n/30. 8. An invoice is dated Jan. 19 with terms of 2/10-30X. What is the last day to take the cash discount 9. An invoice dated June 10 is for $3,939 with terms of 5/10 EOM, anticipation permitted. Calculate the amount that should be remitted if paid on July 21. 10.Using the following figures, determine closing book inventory. Opening Inventory $92,439 Gross purchases $23,299 RTV (Return to vendor) $2,377 Cash discounts $1,059 Markdowns $4,003 Markdown cancellations $2,484 Employee discounts $3,237 Gross sales $102,358 Customer returns $16,273 11.Determine shortage or overage percent. Net sales for the accessories department in November were $47,938. Book inventory at the end of the month showed that $103,742 should be on hand. Physical inventory showed $102,482. 12.Calculate shortage or overage percent. Given: Opening inventory $32,935 RTV $1,392 Gross purchases $52,293 Customer returns $2,357 Gross sales $42,382 Transfer in $1,485 Transfer out $737 Markdowns $2,385 Markdown cancellations $1,833 Employee discounts $3,238 Closing physical inventory $42,392 13.Calculate estimated physical inventory if shortage is estimated to have been 3.65%. Given: Net sales $38,485 Closing book inventory $28,329 14.Given: Cost Retail Opening inventory $45,667 $71,947 Gross purchases $139,102 $249,831 RTV $4,416 $7,631 Freight $1,009 Net transfers in $1,067 $2,935 Gross sales $250,495 Customer returns $26,671 Markdowns $20,136 Markdown cancellations $756 Employee discounts $2,853 Closing physical $59,219 inventory Cash discounts $5,787 a. Total merchandise handled at retail and cost b. Cost % c. Closing book inventory at retail d. Closing book/physical inventory at cost e. Total cost of merchandise sold and gross margin f. Gross margin % 15.Given: Cost Retail Opening inventory $42,791 $69,537 Gross purchases $97,891 $179,453 RTV $3,421 $5,238 Freight $2,129 Net transfers in $2,661 $3,091 Gross sales 179,161 Customer returns $23,489 Markdowns $22,247 Markdown cancellations $587 Employee discounts $591 Closing physical $64,783 inventory Cash discounts 3,068 a. Total merchandise handled at retail and cost b. Cost % c. Closing book inventory at retail d. Closing book/physical inventory at cost e. Total cost of merchandise sold and gross margin f. Gross margin %