Rains Company is a furniture retailer. On January 14, 2014, Rains purchased merchandise inventory at a cost of $48,000. Credit terms were 2/10, n/30. The inventory was sold on account for $80,000 on January 21, 2014. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2014 and the accounts receivables were settled on January 30, 2014. Which statement is correct?
A) Cash flows were affected on January 14 and January 21.
B) Gross profit percentage is 60%.
C) On January 30, 2014, customers should remit cash in the amount of $79,200.
D) There is not enough information available to answer this question.

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The Answer of Rains Company is a furniture retailer. On January 14, 2014, Rains purchased merchandise inventory at a cost of $48,000. Credit terms were 2/10, n/30. The inventory was sold on account for $80,000 on January 21, 2014. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2014 and the accounts receivables were settled on January 30, 2014. Which statement is correct?
A) Cash flows were affected on January 14 and January 21.
B) Gross profit percentage is 60%.
C) On January 30, 2014, customers should remit cash in the amount of $79,200.
D) There is not enough information available to answer this question.

Rains Company Is a Furniture Retailer