The Oak House Had a Markup of $24

question 84

Multiple Choice

The Oak House had a markup of $24.87 on an oak table that they sold for $88.99. Find the cost and the percent of markup.

• A) $64.12, 27.9%
• B) $88.99, 27.9%
• C) $64.12, 38.8%
• D) $113.86, 21.8%

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Definitions:

Journalize

The act of recording business transactions in the chronological accounting record known as the journal.

Terms 2/10, N/30

A payment term indicating that a buyer can take a 2% discount on the invoice amount if the payment is made within 10 days; otherwise, the full invoice amount must be paid within 30 days.

Perpetual Inventory Method

The perpetual inventory method is a system of accounting for inventory that continuously updates the quantity and value of inventory items after every transaction.

Journalize

The act of recording transactions in the accounting journals as part of the bookkeeping process.