Sales is $ 500000Sales returns and allowance $ 25000Cost of goods sold 250000Deternine the Net gales and Gross profit

Formula: Net sales = Sales - Sales returns and allowances deduction of sales returns and allowances…

Answered: Sales is $ 500000 Sales returns and…

Sales is $ 500000 Sales returns and allowance $ 25000 Cost of zoods sold 250000 Doternine the Not galog and Gross prof it

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.1BE: Gross profit During the current year, merchandise is sold for 18,300 cash and 295,700 on account....

See similar textbooks

Related questions

Q: operating costs wer

A: Given as, Revenue $25 Operating costs $4.75 $3,150

Q: (multiple answers) Choose all correct answers. O Using backtesting with ex-post comparison can…

A: Financial institutions A financial institution refers to the company that is involved in the dealing…

Q: 16) The sales method of accounting for byproducts allows companies to manage its reported earnings…

A: Byproducts are materials that are created during the production process, in addition to primary…

Q: Contribution Margin Incone Statenent Sales (420, 000 units) Variable costs Direct materials Direct…

A: The question is based on the concept of Cost Accounting.

Q: ASSETS LIABILITII OWNER'S EQUITY $30,000 $22,000 a. b. $ 7,000 $98,000 C. $25,000 $11,000

A: Asset equation satisfies the double entry system of accounting. It is given by the formula, "Assets…

Q: Equipment Purchase price was $ 500000 on January 01, 2018. Salvage value at the end of the 10 Years…

A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life years

Q: QUESTION I Sam Bhd. is registered with an authorised capital of 600,000 ordinary shares of RMI. The…

A: Statement of Profit & Loss or Income Statement is a summary of all revenues, gains and all…

Q: Amount Sales 123,000 Variable expenses 49,200 Contribution margin 73,800 Fixed expenses 24,000 Net…

A: Formula used: Degree of operating leverage = ( Total contribution margin / Net operating income )…

Q: At December 31, 2019, the Blue Agave Company had a current deferred tax asset of $60,000, arising…

A: What is meant by Journal entries? It is the first step to record the financial transactions in the…

Q: Basic Accounting Equation) Fill up the missing amounts for each case Case 1 Case 2 Case 3…

A: The basic accounting equation based on which the financial statements of a business can be prepared…

Q: Analyzing changes in unit costs The costs of materials consumed in producing good units in the…

A: Energy cost per ton = Cost of materials Consumed/nu.ber of tons produced

Q: The table shows the marginal cost for a company's product at various production levels. Marginal…

A: We have to estimate the cost to produce the first 12,000 units by considering batches of 2000…

Q: main reason that U.S. currency cannot be turned in to the government in exchange for a tangible…

A: The answer is stated below:

Q: Tom Yuppy, a wealthy investor, paid $43,920 for 1,220 shares of $10 par common stock issued to him…

A: Common stock:- It is such type of stock or share which represents ownership in the company. The…

Q: On January 1 of its first month of business, Bags Bunny, Inc., paid $74,000 for six months rent…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: On July 31, the payroll register for Red Company showed the following totals for the month: gross…

A: Working Note: Sales Salaries Expense = Gross earnings - Office Salaries Expense = $38,950 - $8,450 =…

Q: Flapjack Corporation had 7,744 actual direct labor hours at an actual rate of $12.00 per hour.…

A: Direct labor is labor assigned to a single product, cost center, or production orders in the…

Q: What is the definition of analytical procedures? What is timing of analytical procedures in a…

A: The audit procedure indicates the stages and programs of an audit performed by the auditor to obtain…

Q: 3. Al Anwar ceramics, Oman estimated the sales as follows June – 2,000 units July - 3,000 units…

A: The budget is prepared on the basis of estimated data for the period. The sales budget is prepared…

Q: Prepare Income statement, owner's Equity and Balance sheet for Freeman Co. for the year ended on Jun…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Closing Entries (Net Income) Use the following partial listing of T accounts to complete this…

A: The closing entries are prepared at year end to close the temporary accounts of the business at year…

Q: In March 2020, Jones Company purchased a Mercedes for use in its business at a cost of $73,000.…

A: Introduction:- In March 2020, Jones Company purchased a Mercedes for use in its business at a cost…

Q: Each of the four independent situations below describes a sales-type lease in which annual lease…

Q: Zurich Manufacturing Company acquired three patents in August 2019. The patents have different…

A: Calculation of Amortization of patent for the year 2019 Amortization in 2019 Patent A…

Q: AA and BB entered into a partnership on March 1, 2022, by investing the following assets: AA BB…

A: A partnership is an agreement between two or more partners where partners are agreed to work…

Q: Sales = 317,050 Cost of goods sold= 144,760 Selling and administrative expenses =49,700 Gain on sale…

A: Total sales=P317,050 Operating expenses= P144,760 + P49,700 =P194,460 Income from operations=Total…

Q: The following are facts about a company's activities: Cash flows from operating activities was…

A: Formula used : Ending cash balance = Cash flows from operating activities + investing activities +…

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Debt to Assets ratio? Current assets $22400 Net income $44500 Stockholders' Current liabilities…

A: Debt to asset ratio is a measure that is used to evaluate the portion of total assets that has been…

Q: On January 1, 2022, Tatay, Co. and Walanay, Inc. combined. As of this date, the book values of the…

A: The excess of the purchase amount paid for an acquired firm above the amount of the price not…

Q: Differentiate between a cost center and a profit center. _______

Q: On January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a…

A: Notes payable are long-term commitments that indicate the amount of money owing by a company to its…

Q: From the following particulars calculate earnings of a worker under hasley and Rowan plan. 1)…

A: As per Rowan plan, total earnings is as follows: Total wage = Time taken x time rate + time saved /…

Q: Consider the following information pertaining to OldWest's inventory: Net Realizable Value Quantity…

A: Lets understand the basics. As per IAS 2 "Inventory", inventory should be valued at lower of cost or…

Q: A tool is purchased for $500,000. The expected life is 25 years. The salvage value is $100,000. what…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: only interested in measuring cash flows when they actually occur, not when they accrue as an…

A: the company makes an investment in the project an individual make investment in various types of…

Q: QUESTION I Sam Bhd. is registered with an authorised capital of 600,000 ordinary sha following trial…

A: A profit and loss statement is a financial statement that shows the revenues, expenditures, and…

Q: Myers Corporation has the following data related to direct materials costs for November: actual cost…

A: Formula: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual…

Q: ou noted the following items relative to the company's intangibles assets of Pete Corporation at…

A: Carrying amount of Franchisee:

Q: et for a hypothetical central bank is shown below: Central Bank Balance Sheet in photo Write the…

A: Assets are resources that are controlled which results from prior transactions that are expected to…

Q: Canadian tax principles-2 Lester Inc. has 220,000 common shares outstanding. All of these shares…

A: Answer: Lester inc. owns 220,000 issued common stock. All of these stocks was sold for $13 per, for…

Q: The following information is available for Buble Co. (All numbers are in millions.) December 31,…

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in…

A: Under straight line method, depreciation is charged equally over the useful life of asset.…

Q: Explain what is meant by cash management and the cash conversion cycle and calculate the effective…

A: cash is considered to be the one of the important aspect of the management. management of cash plays…

Q: What is the difference between tax rates and tax rate structures? How does this notion of…

A: Income tax payable is an obligation for the tax payers to the government on the taxable income.…

Q: Under the Acquisition Method, regardless of the purchase price, identifiable net assets of the…

Q: For the second mortgage application, calculate the percentage of appraised value and the potential…

A: Formula: Percentage of Appraised value = Appraised value x Lender's percentage

Q: Himalaya Ltd.’s reporting period is from 1 January to 31 December. Year 2022: At the beginning of…

A: Rights issue refers to the an offer to subscribe to the newly issued shares by the existing…

Q: What is the advantage and disadvantage of paying your employees stock option?

A: employee stock option plan is a plan that gives benefit to the employees ownership or shares in the…

Q: Jackie knows that if she didn’t run her own business, she could return to her previous job at a…

A: a) Jackie owns and operates a website design business. In order to break even fixed cost must equal…

Question

Sales is $ 500000
Sales returns and allowance $ 25000
Cost of goods sold 250000
Deternine the Net gales and Gross profit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Gross profit During the current year, merchandise is sold for 18,300 cash and 295,700 on account. The cost of the goods sold is 188,000. What is the amount of the gross profit?
.Calculate the gross profit from the following? Sales OMR 25000, Cost of goods sold OMR 15000 and Return inwards OMR 2000.,Return outwards 5000, Purchases 5000 a. OMR 8000 b. OMR 5000 c. OMR 10000 d. OMR 15000
A company shows the following balances: Sales Revenue $2962000Sales Returns and Allowances 402000Sales Discounts 60000Cost of Goods Sold 1350000 What is the gross profit rate? 46.0%58.0%54.0%66.0%
Calculate the gross profit from the following? Sales of OMR 20000, Cost of goods sold OMR 8000 and Return inwards OMR 6000, Return outwards 4000, Purchases 15000. a. OMR 5000 b. OMR 8000 c. OMR 6000 d. OMR 12000
Calculate the gross profit from the following? Sales OMR 10000, Cost of goods sold OMR 4000 and Return inwards OMR 4000, Return outwards 2000, Purchases 5000.
Calculate gross profit from the following? Sales OMR 10000, Cost of goods sold OMR 4000 and Return inwards OMR 2000 a.OMR 4000 b.OMR 10000 c.OMR 12000 d.OMR 6000
Operating expenses $ 49000 Sales revenue 208000 Cost of goods sold 157000 The gross profit rate would be
Financial information is presented below: Operating Expenses $ 90000 Sales Returns and Allowances 22000 Sales Discounts 9000 Sales Revenue 281000 Cost of Goods Sold 157000 The gross profit rate would be 49.3%. 37.2%. 43.1%. 55.2%.
Determine the Sales for the year, Gross Profit P240,000.00, Ending Inventory P120,000.00, Goods available for sale P 200,000.00 P 460,000.00 P 320,000.00 P 400,000.00 P 300,000.00
Operating expenses $ 59000 Sales returns and allowances 3000 Sales discounts 5000 Sales revenue 198000 Cost of goods sold 87000 The gross profit rate would be 0.46. 0.56. 0.54. 0.52.