ch 6 hw - 600 acc Rec 600 c inventory 1000 acc pay 1000 d...

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Ch. 6 E-16; PA-3,4,6 Mitchell Stefani e-16 Sales Revenue 10,400 Less: Sales Returns and Allowances 600 Credit Card fee 40 Sales Discount 180 Net Sales 9,580 PA-3 Big Tommy Corp. Income Statement Dec. 31, 06 Sales 420,000 Cost of Goods Sold 279,000 Sales returns and allowances 10000 Sales discounts 6000 Gross profit 125000 Selling, General, and Administrative exp. 75,000 Operating Income 50,000 Income tax exp. 15,000 Net income 35,000 Gross Profit %= (420000-279000)/420000x100% which is 33.6% This number is important because it determines whether a company is earning enough on each sale to cover its operating expenses. PA-4 a) cash 51,200 Inventory 51,200 b) sales returns and allowances
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Unformatted text preview: 600 acc. Rec. 600 c) inventory 1000 acc pay. 1000 d) inventory 24000 acc pay. 24000 e)equipment exp. 400 cash 400 f) office supply exp. 140 cash 140 g) inventory 100 cash 100 h) acc pay. 1000 cash 1000 i) acc pay. 24000 cash 23280 inventory 720 PA-6 1) a acc rec. 550,000 sales rev. 550,000 cost of goods sold 415,000 inventory 415,000 b) sales returns and allowances 10,000 acc rec 10,000 c) cash 539,000 sales discount 11000 acc rec. 550,000 2) a) inventory 550,000 acc pay. 550000 b) acc. Pay 10000 inventory 10000 c) acc pay. 550000 cash 539,000 inventory 11000...
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