Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question: calculating and presenting gross profit.

Question: Calculating and presenting gross profit. ...

60.1K

Verified Solution

Question

Accounting

Question: Calculating and presenting gross profit.
a) Show how the gross profit section of the income statement would appear after the following transactions have taken place.
b) Assuming that the inventory at the beginning of the period was $5000, what would be the amount of inventory showing on the balance sheet at the end of the period?
Transactions:
1. Purchased books from Amazon Co. for a cost of $3000, terms 1/10,n/30 and paid the bill within the discount period.
2. Paid freight on the above purchase of $190.
3. Returned one book to Amazon Co. for $250 because it was damaged. Freight cost was covered by Amazon.
4. Sold books costing $1850 to students for $3400 for cash.
5. Granted credit of $ 180 to one student for the return a book since the student dropped the course. The cost of the book was $160.
6. Sold books costing $1500 for $2900 to Bennys Book Shop, terms 2/10, n/30. The shop paid on the 8th day. We paid the shipping costs of $200 for this order.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

According to the Static Tradeoff Theory, issuing debt has costs and benefits. Describe these costs and...

Finance
Q

1 point) According to data from the Tobacco Institute Testing Laboratory, a certain brand of cigarette...

Basic Math
Q

In comparing Drosophila and human genomes, which of the following statements is correct? A The amount to...

Biology
Q

Case Study num33 Mrs. F has a history of mild heart problems, but she has been admitted...

Medical Sciences
Q

A spring with a mass of 1 kg has damping constant 10 kg/s and a spring...

Mechanical Engineering
Q

What happens to failed innovations? Richard James invented the Slinky. Very interesting right? Well maybe not but,...

General Management
Q

Identify the correct statements about Routers You can select multiple correc answers Router is internetworking...

Physics
Q

30 The switch S shown in figure 32 E35 is kept closed for a long...

Physics
Q

Find the first partial derivatives of f x y 7exy of

Calculus
Q

3 ex f x nv uv 3 e x ex 3 6 ubtex xe u...

Calculus
Q

The various paths are 1 2 3 Job 1 2 The critical path is 1...

Algebra
Q

18 the accounts receivable balance for Midas Company is $750,000. The alleowice e has a...

Accounting