Rudy and Ritchie Ling Ran a Camp This Summer for Children

question 69

Multiple Choice

Rudy and Ritchie Ling ran a camp this summer for children in their neighborhood.Rudy spent $135 on supplies and earned $250 before expenses.Ritchie spent $140 on supplies and made $210 before expenses.What is the combined revenue for the two brothers?

• A)$75
• B)$170
• C)$290
• D)$415
• E)$460

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Definitions:

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts at the time of purchase.

Perpetual Inventory System

An accounting technique that utilizes computerized point-of-sale systems and enterprise asset management software to immediately record inventory transactions upon sale or purchase.

Merchandise

Goods or products that are bought and sold in retail or wholesale in the business.

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive to encourage prompt payment.