Question

Please solve in IFRS Format!

Coggin Company sells many products. Printers are one of its most popular items. Below is an analysis of the inventory purchases and sales of printers for the month of May. Coggin Company uses the perpetual inventory system. Coggin is located in Madrid, Spain.

Peacock Company sold merchandise to Green Frog Company on account for AUS$67,000 with credit terms of 2/10, n/20. The cost of the merchandise was AUS$44,300. During the discount period, Green Frog returned AUS$7,500 of merchandise and paid its account in full (minus the discount) by remitting AUS$58,905 in cash. Both Companies use a periodic inventory system. Show your work 1. Prepare the sales section of the income statement for Peacock Company (revenues through gross profit). Remember to adjust for the returned merchandise (2 accounts affected). (10 Points) 2. Percentage of the Discount (5 points) 3. Implied Interest Rate (5 points) 4. Gross Profit Rate (10 points)

Answer 1

Team Load Test View Review Data Formulas E AutoSum Page Layout Insert Home General Wrap Text Fill- - A A Cut 11 Calibri Delete Format Insert Conditional Format Formatting Cell h Copy Clear Filte Merge & Center A as Table Styles BIU aste Format Painter Editing Cells Styles Number Alignment Font K J G A PEACOCK COMPANY 1 1 INCOME STATEMENT OF COMPANY 2 AMOUNT(Aus$) 3 REVENUE 4 Sales $67,000 5 Less: sales return $7,500 6 Net Sale $59,500 7 Less:- Cost of merchandise $44,300 $15,200 o Gross profit 10 2 11 12 13 3 14 15 Perchantage of discount 59500-58905/59500 0.01 Implied Interest rate the implied interest rate will also be 1% because if payment made late then you have to pay full amount that clearly means you have to pay 59500 not 58905 that's you have to pay 1% extra. 16 0 es es Sheets Sheet10 Sheet11 Sheet12 Sheet 13 Opehere to search

Home Inset AutoSum Fil Wrap Text General - 11 A cut Calibri Delete Format Conditional Format Formattinga Insert Cell 2 Clear- Copy % , EA Merge & Center ble Styles HIU Paste Edting d Format Painter Cells Styles Number Alianment Font iohoard I23 K G F D C A $15,200 Gross profit 59500-58905/59500 Perchantage of discount 10 2 11 12 13 3 14 0.01 Implied Interest rate the implied interest rate will also be 1% because if payment made late then you have to pay full amount that clearly means you have to pay 59500 not 58905 that's you have to pay 1% extra. 15 16 17 18 4 19 Gross profit ratio Sales-Sales return-Cost-Discount/Net sales 20 67000-7500-44300-595/67000 21 22 $0.22 (i.e.22/1) 24 S Sheets Sheet6gheet7 Sheete Sheets Sheetio Sheet11 Sheet12 Sheet13 e sos O yee here to search