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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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?
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