A Wholesale Firm Made Sales with the Following List Prices

question 26

Short Answer

A wholesale firm made sales with the following list prices and trade discounts. Calculate the amount the firm will use to record each sale in the sales journal. Show your calculation.
A. List price of $900 and trade discount of 45 percent.
B. List price of $500 and trade discount of 35 percent.
C. List Price of $1,600 and trade discounts of 25 and 15 percent.

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Definitions:

Direct Labor Cost

The cost associated with employees who directly contribute to the production of goods, such as wages for factory workers.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period.

Production Equipment

Assets used in the manufacturing process to produce goods and services, including machinery, tools, and assembly lines.

Cost Object

Any item for which a separate measurement of costs is desired, including products, services, projects, or customers.