ANSWERS TO QUESTIONS

When we opened for business this year, we purchased $360,000 worth of merchandise inventory, and this morning, the balance in this account was $90,000. The $270,000 difference times the 40% markup indicates that sales on account totalled $378,000 [$270,000 + ($270,000 X .40)] to date. I subtracted the payments of $198,000 made on account this ... ................
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