← C https://www-awu.aleks.com/alekscgi/x/1sLexe/10_u-IgNslkgljY22rR162qV2MyzySimhACwAxSk O MERCHANDISING AND INVENTORY Merchandising: Computing income statement amounts Perry Company has the following account balances at the end of its fiscal year. Compute Net Sale Sales Sales Returns and Allowances Sales Discounts Net Sales Cost of Goods Sold Gross Profit Selling Expenses General and Administrative Expenses Not Income X $122,500 2,700 4,900 1 59,200 7,800 9,900 0

← C https://www-awu.aleks.com/alekscgi/x/1sLexe/10_u-IgNslkgljY22rR162qV2MyzySimhACwAxSk O MERCHANDISING AND INVENTORY Merchandising: Computing income statement amounts Perry Company has the following account balances at the end of its fiscal year. Compute Net Sale Sales Sales Returns and Allowances Sales Discounts Net Sales Cost of Goods Sold Gross Profit Selling Expenses General and Administrative Expenses Not Income X $122,500 2,700 4,900 1 59,200 7,800 9,900 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $159,700 Sales Returns and Allowances 2,070 Sales Discounts 4,171 Interest Revenue 424 Merchandise Inventory, January 1, 20-- 27,500 Estimated Returns Inventory, January 1, 20-- 500 Purchases 110,000 Purchases Returns and Allowances 4,540 Purchases Discounts 2,710 Freight-In 885 Merchandise Inventory, December 31, 20-- 33,900 Estimated Returns Inventory, December 31, 20-- 1,100 Wages Expense 27,000 Supplies Expense 800 Phone Expense 900 Utilities Expense 7,000 Insurance Expense 1,200 Depreciation Expense—Equipment 3,900 Miscellaneous Expense 590 Interest Expense 4,600
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Using the selected year-end account balances at December 31, 2014, for Lifeline General Store that follow, prepare a multistep 2014 income statement. Show detail of net sales. The company uses the periodic inventory system. Beginning merchandise inventory was $28,000; ending merchandise inventory is $21,000. Account Name Debit CreditSales $309,000Sales Returns and Allowances $ 15,200Purchases 114,800Purchases Returns and Allowances 7,000Freight-In 5,600Selling Expenses…
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Freedman Company estimates that sales this year of $12,000 will be returned next year and customers will be granted a full refund. Which of the following journal entries would Freedman Company record as part of its year-end adjustments assuming it uses the perpetual inventory system? a.Debit Estimated Returns Inventory for $12,000 and credit Income Summary for $12,000 b.Debit Sales Returns and Allowances for $12,000 and credit Cost of Goods Sold for $12,000 c.Debit Inventory Short and Over for $12,000 and credit Merchandise Inventory for $12,000 d.Debit Sales Returns and Allowances for $12,000 and credit Customer Refunds Payable for $12,000
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Using the following data taken from Hsu's Imports Inc. which uses a periodic inventory system to answer this question. es Merchandise inventory, April 1 $193,250 Merchandise inventory, March 31 180,100 Purchases 1,079,600 Purchases returns and allowances 51,200 Purchases discounts 18,500 Sales 1,860,000 Freight-in 19,250 Determine the gross profit to be reported on the income statement for the year ended March 31.