The following information appeared in the accounting records of Pinewood Retailers for the previous year: Details Amount Sales $400,000 Purchases $200,000 Inventories: January 1 $80,000 December 31 $120,000 Sales commissions $15,000 What was the gross margin? a. $195,000 b. $185,000 c. $240,000 d. $265,000
The following information appeared in the accounting records of Pinewood Retailers for the previous year: Details Amount Sales $400,000 Purchases $200,000 Inventories: January 1 $80,000 December 31 $120,000 Sales commissions $15,000 What was the gross margin? a. $195,000 b. $185,000 c. $240,000 d. $265,000
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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What was the gross margin on these general accounting question?

Transcribed Image Text:The following information appeared in the accounting records of Pinewood
Retailers for the previous year:
Details
Amount
Sales
$400,000
Purchases
$200,000
Inventories:
January 1
$80,000
December 31
$120,000
Sales commissions $15,000
What was the gross margin?
a. $195,000
b. $185,000
c. $240,000
d. $265,000
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