James Corp provided the ff. information for the current year: Beginning inventory 400,000 Freight in 300,000 Purchase returns 900,000 Ending inventory 500,000 Selling Expenses 1,250,000 Sales Discount 250,000 The Cost of good sold is six times the selling expense. What is the amount of gross purchases? 6,500,000 6,700,000 8,000,000 8,200,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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STATEMENT OF FINANCIAL POSITION

Problem 2-1

James Corp provided the ff. information for the current year:

Beginning inventory 400,000

Freight in 300,000

Purchase returns 900,000

Ending inventory 500,000

Selling Expenses 1,250,000

Sales Discount 250,000

The Cost of good sold is six times the selling expense.

What is the amount of gross purchases?

  1. 6,500,000
  2. 6,700,000
  3. 8,000,000
  4. 8,200,000
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