Compute Cullumber's 2020 gross profit. On January 1, 2020, Cullumber Corporation had inventory of $50,000. At December 31, 202O, Cullumber had the following accountbalances.Freight-in$4,700Purchases503,500Purchase discounts7,400Purchase returns and allowances3,600Sales revenue805,000Sales discounts5,700Sales returns and allowances10,300At December 31, 2020, Cullumber determines that its ending inventory is $60,000.

Gross profit is the amount of profit which is arrived by deducting cost of goods sold from sales…

nuary 1, 2020, Cullumber Corporation had inventory of $50,00O. At December 31, 2020, Cullumber Ces. ght-in $4,700 hases 503,500 chase discounts 7,400 chase returns and allowances 3,600 s revenue 805,000 s discounts 5,700 s returns and allowances 10,300 ecember 31, 2020, Cullumber determines that its ending inventory is $60,000.

nuary 1, 2020, Cullumber Corporation had inventory of $50,00O. At December 31, 2020, Cullumber Ces. ght-in $4,700 hases 503,500 chase discounts 7,400 chase returns and allowances 3,600 s revenue 805,000 s discounts 5,700 s returns and allowances 10,300 ecember 31, 2020, Cullumber determines that its ending inventory is $60,000.

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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Question

Compute Cullumber's 2020 gross profit.

On January 1, 2020, Cullumber Corporation had inventory of $50,000. At December 31, 202O, Cullumber had the following account
balances.
Freight-in
$4,700
Purchases
503,500
Purchase discounts
7,400
Purchase returns and allowances
3,600
Sales revenue
805,000
Sales discounts
5,700
Sales returns and allowances
10,300
At December 31, 2020, Cullumber determines that its ending inventory is $60,000.

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