PT Barnum Company uses the periodic inventory system and has the following data from its...
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Accounting
PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records:
Sales $44,000 Sales Returns & Allowances $3,140 Freight In on Inventory Purchases $400 Delivery Expense on Sales $300 Purchase Returns & Allowances $500 Purchases $20,280 Inventory December 1 $13,726 Average gross profit percentage = 25%
Because of a wildcat strike by Barnums warehouse employees that prevents an inventory count, Barnum decides to use the Gross Profit Method to estimate the December 31 Inventory for purpose of generating its monthly financials.
Required 1: What is the Cost of Merchandise Available for Sale for PT Barnum? $
Required 2: What is the net cost of purchases that will be used to calculate PT Barnum net income? $
Required 3: What is the amount of net sales that will be used to calculate PT Barnum net income? $
Required 4: What is the Cost of Goods Sold that will be used to calculate PT Barnum net income? $
Required 5: What is the Gross Profit that will be reported in PT Barnum Income Statement? $
Required 6: What is the value of Ending Inventory PT Barnum will report in the Balance Sheet of December 31st? $
PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records:
Sales $44,000 Sales Returns & Allowances $3,140 Freight In on Inventory Purchases $400 Delivery Expense on Sales $300 Purchase Returns & Allowances $500 Purchases $20,280 Inventory December 1 $13,726 Average gross profit percentage = 25%
Because of a wildcat strike by Barnums warehouse employees that prevents an inventory count, Barnum decides to use the Gross Profit Method to estimate the December 31 Inventory for purpose of generating its monthly financials.
Required 1: What is the Cost of Merchandise Available for Sale for PT Barnum? $
Required 2: What is the net cost of purchases that will be used to calculate PT Barnum net income? $
Required 3: What is the amount of net sales that will be used to calculate PT Barnum net income? $
Required 4: What is the Cost of Goods Sold that will be used to calculate PT Barnum net income? $
Required 5: What is the Gross Profit that will be reported in PT Barnum Income Statement? $
Required 6: What is the value of Ending Inventory PT Barnum will report in the Balance Sheet of December 31st? $
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