An Electronics Store Purchases a Certain Video Game from the Manufacturer

question 9

Short Answer

An electronics store purchases a certain video game from the manufacturer for $18 per unit. The store sells the game at a mark-up of 120% over the purchase price. You found a coupon, offered in the local newspaper, which will reduce the price by 20%. How much money would the store profit if you purchased the video game using the coupon? Give your answer as a decimal rounded to the nearest
hundredth.

---

Definitions:

Owner's Equity Accounts

Accounts representing the owner’s claim or interest in the business assets after all liabilities have been deducted.

Credits

Entries on the right side of an account, indicating an increase in liabilities, equity, or revenue, or a decrease in assets or expenses.

Posting Reference Notation

A unique code or number used to track the entry of a transaction in the accounting records to its source document.

Journal

A book or electronic record in which transactions are recorded in chronological order before they are posted to ledger accounts.