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
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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 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?

 

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