The following information is provided for Kelly Plumbing Supply. Cash received from customers during December 20X1 $387,000 Cash paid to suppliers for inventory during December 20X1 131,000 Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 20X1. Accounts receivable at December 31, 20X1, totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 20X1, to December 31, 20X1. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

The following information is provided for Kelly Plumbing Supply.

Cash received from customers during December 20X1

$387,000

Cash paid to suppliers for inventory during December 20X1

131,000

Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 20X1. Accounts receivable at December 31, 20X1, totaled $141,000.

Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 20X1, to December 31, 20X1. The balance in the inventory account decreased by $39,000 over the same period.

Required:

What is gross profit for the month of December under accrual accounting?

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education