It Costs Custom Design, Inc

question 127

Essay

It costs Custom Design, Inc., $10 to make a brass and copper candleholder. It sells the candleholder to a wholesaler for $16. The wholesaler sells the candleholder to a gift shop for $20. The gift shop prices the candleholder at $45. What was the markup on selling price for each member of this product's channel of distribution?

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Definitions:

Journal Entry

A record used in bookkeeping that logs the debits and credits made to different accounts as a result of business transactions.

Recording Error

A mistake made during the process of entering financial transactions into the accounting records.

Bank Service Charge

Fees charged by banks for account maintenance, transactions, and other services provided to customers, often listed in the account statement.

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.