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Exercise 3: The following information is given for Erwin Company for 19X6: net sales $52,000, net purchases $33,000, ending inventory $12,000, beginning inventory $9,000, operating expenses $5,000. Compute: a. Cost of goods sold b. Gross profit

Exercise 3: The following information is given for Erwin Company for 19X6: net sales $52,000, net purchases $33,000, ending inventory $12,000, beginning inventory $9,000, operating expenses $5,000. Compute: a. Cost of goods sold b. Gross profit

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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Exercise 3: The following information is given for Erwin Company for 19X6: net sales $52,000, net purchases $33,000, ending inventory $12,000, beginning inventory $9,000, operating expenses $5,000. Compute: a. Cost of goods sold b. Gross profit Exercise 4: The following information is given for Northwest Company for 19X1: sales $6,300, purchases $7,100, beginning inventory $600, ending inventory $2,000, sales discounts $120, purchase discounts $160, sales returns and allowances $300, purchase returns and allowances $190, operating expenses $1,400. Compute: a. Net sales b. Net purchases c. Cost of goods sold d. Gross margin e. Net income or loss
Transcribed Image Text:Exercise 3: The following information is given for Erwin Company for 19X6: net sales $52,000, net purchases $33,000, ending inventory $12,000, beginning inventory $9,000, operating expenses $5,000. Compute: a. Cost of goods sold b. Gross profit Exercise 4: The following information is given for Northwest Company for 19X1: sales $6,300, purchases $7,100, beginning inventory $600, ending inventory $2,000, sales discounts $120, purchase discounts $160, sales returns and allowances $300, purchase returns and allowances $190, operating expenses $1,400. Compute: a. Net sales b. Net purchases c. Cost of goods sold d. Gross margin e. Net income or loss
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