An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000 Cost of goods sold 2,400,000 Administrative expenses 700,000 Loss on sale of equipment 100,000 Sales commissions 500,000 Interest revenue 450,000 Freight out 150,000 Loss on early extinguishment of long-term debt 200,000 Doubtful accounts expense 150,000 What is the net income for 2020? a. 2,500,000 b. 1,750,000 c. 1,400,000 d. 1,540,000
An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000 Cost of goods sold 2,400,000 Administrative expenses 700,000 Loss on sale of equipment 100,000 Sales commissions 500,000 Interest revenue 450,000 Freight out 150,000 Loss on early extinguishment of long-term debt 200,000 Doubtful accounts expense 150,000 What is the net income for 2020? a. 2,500,000 b. 1,750,000 c. 1,400,000 d. 1,540,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An entity reported the following information for the year ended December 31, 2020:
|
Sales |
7,750,000 |
|
Cost of goods sold |
2,400,000 |
|
Administrative expenses |
700,000 |
|
Loss on sale of equipment |
100,000 |
|
Sales commissions |
500,000 |
|
Interest revenue |
450,000 |
|
Freight out |
150,000 |
|
Loss on early extinguishment of long-term debt |
200,000 |
|
Doubtful accounts expense |
150,000 |
What is the net income for 2020?
a. 2,500,000
b. 1,750,000
c. 1,400,000
d. 1,540,000
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