If Maury's Work Warehouse Sets Retail Prices So That Mark-Ups

question 232

Multiple Choice

If Maury's Work Warehouse sets retail prices so that mark-ups are equal to 20% of cost, what is the cost of a pair of work boots that have a retail price of $129?

• A) $108.00
• B) $103.20
• C) $101.91
• D) $92.00
• E) $86.50

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Definitions:

Entry

A record in an account that documents a financial transaction in bookkeeping.

Special Journals

Customized accounting journals used for recording specific types of transactions that occur frequently.

General Journal

A primary accounting record where all types of financial transactions are initially recorded in chronological order before being posted to specific accounts in the general ledger.

Cash Receipts Journal

A specific financial journal used in accounting to record all cash inflows to a business.