Q2. Calculate Net Sales, Cost of the goods Sold, Gross Profit and Net Profit from the following information Gross sales RO 53400 Purchase Discount RO 1675 Bank charges RO1654 Closing stock RO 11870 Cash RO 3200 Other Income RO 765 Owners Equity RO 76000 Building RO 32000 Depreciation RO 1230 Salaries RO 3450 Electricity RO 780 Sales Discount RO 6230 Freight in RO 1450 Sales returns is RO 4350 Opening stock is RO 7680 Purchases RO 16550 Machinery RO 21000 Purchase return RO 1240

Q: Required: Prepare the closing entries by filling - in the blanks of the following questions:…

A: Closing entries are the journal entries. A closing entry is a journal entry recorded at the end of…

Q: Calculate Cost of goods sold from the following? Opening stock OMR 5000, Carriage outwards OMR 2000,…

A: Cost of goods sold = Opening stock + Purchases - Closing stock

Q: Merchandise purchased fo Freight In... Freight Out.. Purchased returns..

A: Before calculating the inventoriable costs,for better understanding,firstly we need to understand…

Q: A wholesaler sold merchandise inventory with in invoice price RO 160,000 to the customer of business…

A: Formula: Cash discount: Goods sold on credit base. If the amount paid with in the discount period…

Q: Calculate Cost of goods sold from the following? Opening stock OMR 30000, Carriage outwards OMR…

A: The cost of goods sold is calculated as cost of goods that are sold during the period.

Q: Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING…

A: The correct option is  A. 120000

Q: From the following information, calculate the value of purchases. $ Opening payables 142,600 Cash…

A: Closing payable = (Opening payable + Purchases ) - ( Cash Paid + Discount received + Goods returned…

Q: Calculate Cost of Goods sold from the following? Opening stock OMR 20000, Carriage outwards OMR…

A: Calculation of cost of goods sold from the following::::: cost of goods sold=Opening…

Q: Calculate net profit Details Debit(OMR) Credit(OMR) General  expenses 11700   Prepaid Rent…

A: Net Profit = Total revenue - Total expenses

Q: Financial information is presented below: Operating Expenses $91500 Sales Returns and 18900…

A: The net sales as the name suggests is the amount of sales which has been after all the deductions…

Q: Calculate Cost of goods sold from the following? Opening stock OMR 30000, Carriage outwards OMR…

A: Note: Carriage outwards and salaries and wages are indirect expenses.

Q: Net credit sales?

A: It is pertinent to note that  Net sales = Total sales - Sales returns and allowances  Now Total…

Q: 8) MN traders has the purchases of RO 76,500, purchases returns and allowances of RO 1,900,…

A: Net cost of purchases includes all the expenses incurred for purchase and deduct the discounts…

Q: 1 Use the following table for the following questions (Hint Identify which accounts are in…

A: Net Sales -Net Sales are the sales after deducting Sales returns and allowances and Sales discounts.…

Q: 1. Calculate the missing information for the purchase. Item Selling Price Sales Tax Rate Sales Tax…

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: Operating Expenses 91400 Sales Returns and 18400 Allowances Sales Discounts 12700 Sales Revenue…

A: The income statement is prepared to find the net income or loss incurred during the period.

Q: Financial information is presented below: Operating Expenses Sales Returns and Allowances Sales…

A: Gross ProfitGross profit is the profit the company earns before the deduction of operating…

Q: From the following information, calculate Net Profit. Details Debit (RO) Credit (RO) Salary 6500…

A: Given,  Net sales = RO207000 Cost of goods sold = RO165000 Closing stock = RO8700 Gross profit = Net…

Q: Consider the following financial statement information: Item Beginning Year Ending Inventory € 9.780…

A: Average Inventory for the year = (Inventory at the beginning + Inventory at the end) /2…

Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…

A: Credit terms 3/10, n/60 means customer will get a discount of 3% if payment is made within 10 days,…

Q: Calculate Cost of goods sold from the following? Opening stock OMR 30000, Carriage outwards OMR…

A: Opening stock = OMR 30000 Purchases = OMR 40000 Closing stock = OMR 14000

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.