Periodic Inventory System: Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. Gross Profit Percentage: Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula: Gross profit percentage= Gross profit Net sales × 100 The balances in the sales revenue of Company C, at April 10, 2019.

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Answer 1

Question

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: 1. Assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots? (Note: L.L. Bean most likely will make…

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Answer 2

Question

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Answer 6

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

Answer 7

Chapter 6, Problem 6.5EYCT

(a) (1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

Gross profit percentage= Gross profitNet sales×100

The balances in the sales revenue of Company C, at April 10, 2019.

Answer 8

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

Answer 9

(2)

To determine

The balances in the purchases of Company C, at April 10, 2019.

Answer 10

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

Answer 11

(b)

To determine

The average gross profit rate for the years 2017, and 2018.

Answer 12

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Answer 13

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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The balances in the purchases of Company C, at April 10, 2019.

The average gross profit rate for the years 2017, and 2018.

The inventory loss as a result of the fire, using the gross profit method.

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