PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records: Sales Sales Returns & Allowances Freight In on Inventory Purchases Delivery Expense on Sales Purchase Returns & Allowances Purchases Inventory December 1 Average gross profit percentage = 25% $44,000 $2,380 $400 $300 $500 $18,760 $13,726 Because of a wildcat strike by Barnum's warehouse employees that prevents an inventory count, Barnum decides to use the "Gross Profit Method" to estimate the December 31 Inventory for purpose of generating its monthly financials. Required 1: What is the "Cost of Merchandise Available for Sale" for PT Barnum? $ Required 2: What is the net cost of purchases that will be used to calculate PT Barnum net income? $ Required 3: What is the amount of net sales that will be used to calculate PT Barnum net income? $[ 41620

PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records: Sales Sales Returns & Allowances Freight In on Inventory Purchases Delivery Expense on Sales Purchase Returns & Allowances Purchases Inventory December 1 Average gross profit percentage = 25% $44,000 $2,380 $400 $300 $500 $18,760 $13,726 Because of a wildcat strike by Barnum's warehouse employees that prevents an inventory count, Barnum decides to use the "Gross Profit Method" to estimate the December 31 Inventory for purpose of generating its monthly financials. Required 1: What is the "Cost of Merchandise Available for Sale" for PT Barnum? $ Required 2: What is the net cost of purchases that will be used to calculate PT Barnum net income? $ Required 3: What is the amount of net sales that will be used to calculate PT Barnum net income? $[ 41620

Name: PT Barnum Company uses the periodic inventory system and has the foll
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Description: PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records:SalesSales Returns & AllowancesFreight In on Inventory PurchasesDelivery Expense on SalesPurchase Returns & AllowancesPurchasesInven

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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