Question: 1. A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows:
A: $400 a unit, total of $40,000, 2/10, n/30, plus transportation costs of $625.
B: $403 a unit, total of $40,300, 1/10, n/30, no charge for transportation. Which of the two offers, A or B, yields the lower price?
2. What is the normal balance of the following accounts:
(a) Cost of Merchandise Sold,
(b) Merchandise Inventory,
(c) Sales,
(d) Sales Discounts,
(e) Sales Returns and Allowances,
(f) Transportation Out?