hey guys, i asked this in a different thread and then i saw this one...
i dont quite understand this question.
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these are the answers.
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i dont understand where all the values (3300, 5500, 2000, 1200) come from.
could anybody explain? thanks.
what exam was this again?
Work backwards.
Ok firstly, he received a deposit of 20%
so 20% of $10000 (500x20) is $2000
This is 'prepaid sales revenue'
Next you have to determine how much he actually purchased with this $2000
$2000/500 (selling price) is 4
therefore he purchased 4, so 4x300 (cost price) is $1200
NEXT
deduct these figures to determine ones in the sales journal
he purchased 15 bed (15x500) which has a total selling price of $7500
minus $2000 from this figure and you get your $5500
then do the same for cost price
15x300=4500
4500-1200=3300
Hope that helped... badly worded but meh, tricky question