Lindsey Corporation had the following account balances:Sales revenue $200,000Beginning inventory 40,000Purchases 80,000Purchase discounts 3,000Freight-in 1,000Ending inventory 30,000Purchases returns and allowances 2,000Given the information above, and assuming that Lindsay's total operating expenses (exclusive of the cost of goods sold) are $40,000, pretax income isa. $114,000b. $110,000c. $46,000d. $74,000 Garfunkle Company had the following four transactions during January 2017:January 3 Purchased 200 hair dryers from Hot Aire Corporation for $30 each, termsn/30.5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30.15 Returned five of the hair dryers purchased on January 3 because they weredefective.22 A customer returned two hair dryers purchased on January 5 because theywere defective.Given the information above, with the perpetual inventory system, the entry to record the January 15 transaction would include aOa. credit to inventory of $150.Ob. credit to purchase returns of $150.Oc. debit to purchases of $150.Od. credit to purchases of $150.

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Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 Given the information above, and assuming that Lindsay's total operating expenses (exclusive of the cost of goods sold) are $40,000, pretax income is a. $114,000 b. $110,000 c. $46,000 d. $74,000

Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 Given the information above, and assuming that Lindsay's total operating expenses (exclusive of the cost of goods sold) are $40,000, pretax income is a. $114,000 b. $110,000 c. $46,000 d. $74,000

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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A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $140,000. During the year, Sales Revenue amounted to $75,000, Cost of Goods Sold was $45,000, and all other expenses totaled $10,000. The company declared and paid $25,000 as dividends. The ending balance of Retained Earnings would be OA. $160,000 OB. $135,000 OC. $140,000 OD. $185,000 GOVE
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