Discuss amount of deductions is bad dog allowed to claim


Jarvie loves to bike. In fact, he has always turned down better paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Because road bikes have higher profit margins, employees receive a 30 percent discount. Employees also normally receive a 20 percent discount on mountain bikes. During the current year, Jarvie bought the following bikes:

Description Retail Price Cost Employee Price

  • Specialized road bike $7,300 $5,050 $5,110
  • Rocky Mountain mountain bike $5,550 $4,250 $4,440
  • Trek road bike $4,100 $3,100 $2,870
  • Yeti mountain bike $4,800 $4,210 $3,840

What amount of deductions is Bad Dog allowed to claim from these transactions?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Discuss amount of deductions is bad dog allowed to claim
Reference No:- TGS0707148

Expected delivery within 24 Hours