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Question: 1. A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows:

A: $400 a unit, total of $40,000, 2/10, n/30, plus transportation costs of $625.

B: $403 a unit, total of $40,300, 1/10, n/30, no charge for transportation. Which of the two offers, A or B, yields the lower price?

2. What is the normal balance of the following accounts:

(a) Cost of Merchandise Sold,

(b) Merchandise Inventory,

(d) Sales Discounts,

(e) Sales Returns and Allowances,

(f) Transportation Out?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92336256

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