Gross profit?? General Account On January 1, 2017, Christel Madan Corporation had inventory of$54,500. At December 31, 2017, Christel Madan had the followingaccount balances.Freight-inPurchasesPurchase discountsPurchase returns and allowancesSales revenue$ 4,500$5,10,000$7,350$ 3,700$ 8,08,000$ 5,900$ 11,100Sales discountsSales returns and allowancesAt December 31, 2017, Christel Madan determines that its endinginventory is $64,500.Compute Christel Madan's 2017 gross profit.

Definition of Gross ProfitGross Profit is the profit a company earns after deducting the Cost of…

Answered: On January 1, 2017, Christel Madan…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

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Problem 5.8MCP

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Cost of Merchandise Sold and Related Items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory $ 10,900 Merchandise inventory, May 1, 2018 435,600 Merchandise inventory, April 30, 2019 544,500 Purchases 3,539,000 Purchases returns and allowances 108,900 Purchases discounts 65,300 Sales 5,444,600 Freight in 16,300 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system.
The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory 24 11,600 Merchandise inventory, May 1, 2018 Merchandise inventory, April 30, 2019 380,000 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. Would gross profit be different if the perpetual inventory system was used C. instead of the periodic inventory system?
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Eva Corporation reported the following amounts for the year ended 31 December 2020: Inventory at 1 January 2020 Inventory at 31 December 2020 $189,000 284,250 2,100,000 45,000 Sales Sales discounts Purchases 780,000 13,500 16,500 Loss on sale of investment Purchase returns and allowances Sales returns and allowances 41,250 Transportation-in Interest expenses 28,530 9,000 Selling expenses Administrative expenses 241,650 193,320 Loss from operations of a discontinued division Gain on disposal of a discontinued division Loss on disposal of part of the retail division 225,000 170,000 7,500 180,000 1,485,000 Rent revenue Retained earnings at 1 January 2020 Additional information: (1) Depreciation on a delivery van had not been recorded for years 2019 and 2020 as at 31 December 2020. The van was purchased on 1 July 2019 at a cost of $200,000. The residual value and useful life were estimated to be $10,000 and 5 years respectively. Double-declining balance method is to be used for the…
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Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber CompanyBalance SheetDecember 31, 2021 Cash $13,310 Accounts payable $8,900 Accounts receivable 20,100 Common stock 18,800 Allowance for doubtful accounts (720) Retained earnings 14,810 Inventory 9,820 $42,510 $42,510 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $4,800 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Cullumber purchased $15,760 of inventory on account. 11 Cullumber sold for $26,200 on account inventory that cost $18,330. 15 Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee…
Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber CompanyBalance SheetDecember 31, 2021 Cash $13,310 Accounts payable $8,900 Accounts receivable 20,100 Common stock 18,800 Allowance for doubtful accounts (720) Retained earnings 14,810 Inventory 9,820 $42,510 $42,510 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $4,800 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Cullumber purchased $15,760 of inventory on account. 11 Cullumber sold for $26,200 on account inventory that cost $18,330. 15 Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee…
Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber CompanyBalance SheetDecember 31, 2021 Cash $13,310 Accounts payable $8,900 Accounts receivable 20,100 Common stock 18,800 Allowance for doubtful accounts (720) Retained earnings 14,810 Inventory 9,820 $42,510 $42,510 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $4,800 account. 3 Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Cullumber purchased $15,760 of inventory on account. 11 Cullumber sold for $26,200 on account inventory that cost $18,330. 15 Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee…

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