June supermarket applies a Gross Mark- up of 20% on all items. Below is an extract of the Income Statement for the year ended April 4, 2020? incomplete Sales ? Less: Cost of Sales Opening stock Purchases 2,500,000 500,000 3,000,000 ( 1, 500,000) Less: closing stock 1,500,000 GROSS PROFIT ? Required: Calculate: a) Gross profit for the year.| b) Sales figure for the year c) The gross margin ratio for the business

June supermarket applies a Gross Mark- up of 20% on all items. Below is an extract of the Income Statement for the year ended April 4, 2020? incomplete Sales ? Less: Cost of Sales Opening stock Purchases 2,500,000 500,000 3,000,000 ( 1, 500,000) Less: closing stock 1,500,000 GROSS PROFIT ? Required: Calculate: a) Gross profit for the year.| b) Sales figure for the year c) The gross margin ratio for the business

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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In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns in the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $6,000, and the unadjusted balance in Sales Refund Payable is a credit of $10,000. The adjusting entry or entries to record the expected sales returns is (are): (A) Accounts Receivable 2,000,000 Sales 2,000,000 (B) Sales returns and allowances 150,000 Sales 150,000 Cost of Goods Sold 90,000 Inventory Returns Estimated 90,000 (C) Sales 2,000,000 Sales Refund Payable 160,000 Accounts receivable 1,840,000 Sales Refund Payable 150,0000 Accounts receivable 150,000 (D) Sales Returns and Allowances 150,000 Sales Refund Payable 150,000 Inventory Returns Estimated 90,000 Cost of goods sold 90,000
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Sporting Pro wants to prepare Interim financlal statements for the first quarter of 2020 but would like to avold making a physical count of Inventory. During the last five years, the company's gross profit rate has averaged 47%. The following information for the year's first quarter Is avallable from Its records: January 1 beginning inventory 350, 260 Purchases 995, 200 Purchase returns 14,ese Transportation-in 7,900 Sales 1,291,150 Sales returns 9,950 Requlred: Use the gross profit method to prepare an estimate of the company's March 31 inventory. SPORTING PRO Estimated Inventory March 31, 2020 Goods available for sale: Goods available for sale Estimated cost of goods sold:
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