The accounts of Entity A on December 31, 20x1 show the following balances: Gross sales 5,800,000 Sales returns 116,000 Sales discounts 1,160,000 Gross purchases 2,200,000 Freight-in 110,000 Purchase discounts 66,000 Purchase returns 22,000 Inventory, beg. 460,000 Inventory, end. 320,000 Requirement: Prepare a statement of cost of goods sold and gross profit.
The accounts of Entity A on December 31, 20x1 show the following balances: Gross sales 5,800,000 Sales returns 116,000 Sales discounts 1,160,000 Gross purchases 2,200,000 Freight-in 110,000 Purchase discounts 66,000 Purchase returns 22,000 Inventory, beg. 460,000 Inventory, end. 320,000 Requirement: Prepare a statement of cost of goods sold and gross profit.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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The accounts of Entity A on December 31, 20x1 show the following balances:
Gross sales |
5,800,000 |
Sales returns |
116,000 |
Sales discounts |
1,160,000 |
Gross purchases |
2,200,000 |
Freight-in |
110,000 |
Purchase discounts |
66,000 |
Purchase returns |
22,000 |
Inventory, beg. |
460,000 |
Inventory, end. |
320,000 |
Requirement: Prepare a statement of cost of goods sold and gross profit.
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