Reference no: EM132571806

Questions -

Q1. Determine the correct journal entry that gave rise to Cost of Goods Sold on the income statement by choosing which account is debited and which is credited for the cost of the goods.

Credit Accounts Payable

Debit Sales

Credit Inventory

Credit Cost of Goods Sold

Debit Cost of Goods Sold

Debit Inventory

Debit Accounts Payable

Credit Accounts Receivable

Q2. Accounts Receivable $1,000

Accounts Payable 100

Accumulated Depreciation (4,000)

Cost of Goods Sold 8,000

Depreciation Expense 2,000

Interest Expense 500

Other Operating Expenses 700

Retained Earnings 1,200

Sales, Net1 2,000

Using the financial statement line items above, calculate the Net Profit Margin as a percentage rounding to the nearest tenth of a percent.