Calculate the gross profit from the following: OMR. Sales Discount 2750 Total Sales 178000 Sales Returns and Allowances 900 Freight In 1150 Salary Expense 9200 Purchase Discount 1800 Purchases 72000 Rent Expense 8400 Purchase Returns and Allowances 1950 Opening Inventory 22400 Closing Inventory 16800 Select one: a. 99350 OMR b. 57400 OMR c. 75000 OMR d. 95700 OMR

Calculate the gross profit from the following: OMR. Sales Discount 2750 Total Sales 178000 Sales Returns and Allowances 900 Freight In 1150 Salary Expense 9200 Purchase Discount 1800 Purchases 72000 Rent Expense 8400 Purchase Returns and Allowances 1950 Opening Inventory 22400 Closing Inventory 16800 Select one: a. 99350 OMR b. 57400 OMR c. 75000 OMR d. 95700 OMR

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 10MC: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays...

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Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
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A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195
Effects of Inventory Costing Methods Jefferson Enterprises has the following income statement data available for 2019: Jefferson uses a perpetual inventory accounting system and the average cost method. Jefferson is considering adopting the FIFO or LIFO method for costing inventory. Jeffersons accountant prepared the following data: Required: 1. Compute income before taxes, income taxes expense, and net income for each of the three inventory costing methods. (Round to the nearest dollar.) 2. CONCEPTUAL CONNECTION Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. CONCEPTUAL CONNECTION Which method produces the most realistic amount for net income? For inventory? Explain your answer.
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Information below relates to sales transactions for ABC Enterprises. Calculate the Gross profit. Sales Discount RO 600 Gross Sales 55000 Loan 1200 Opening Inventory 6000 Sales Returns and Allowances 2500 Freight in 1000 Purchase Discount 500 Purchases 35000 Machinery 5200 Purchase Returns and Allowances 1200 Closing Inventory 4500 Select one: a. 20100 b. 25100 c. 16100 d. 17100 e. None of the options
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Serendipity Company uses the first-in, first-out retail method of inventory valuation. The following information is available: • Beginning inventory: P115,000 at cost; P300,000 at retail • Purchases: P600,000 at cost; P1,100,000 at retail • Net additional markups – P100,000; net markdowns – P200,000 • Sales revenue – P900,000 What is the estimated cost of the ending inventory using the FIFO retail method? A. P240,000 B. 200,000 C. 400,000 D. 220,000
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	OMR.
Sales Discount	2750
Total Sales	178000
Sales Returns and Allowances	900
Freight In	1150
Salary Expense	9200
Purchase Discount	1800
Purchases	72000
Rent Expense	8400
Purchase Returns and Allowances	1950
Opening Inventory	22400
Closing Inventory	16800