Omar makes a total of $51.75 selling
brownies and muffins at a bake sale.
If he sells 16 brownies for $2.25
leach, how many muffins does he sell
at $1.75 each?
Answers
Step-by-step explanation:
Under normal course of business, goods sold to customers is treated as sale immediately when the goods
are sold, with corresponding revenue from such sale being recognized in the prot and loss account.
However, when a businessman wants to increase his sales or introduce a new product in the market, he
usually faces hardship due to competition prevailing in the market. To counter it, goods are sometimes sent
to the customers on sale or return basis. Here, goods sent on ‘approval’ or ‘on return’ basis means goods are
delivered to the customers with the option to retain or return them within a specied period. Generally,
these transactions take place between a manufacturer (or a wholesaler) and a retailer. In current scenario,
this practice is prevalent in case of online sales, where the buyer is given time of few days to return the goods
if the buyer believes that the specications of goods are dierent from the same mentioned on website at
the time of sale. There may be certain terms and conditions to administrate the return of goods. Following
are essentially the features of sale of goods on approval or return basis