chap6 - Freight-In 10,078 Net Cost of Purchases Merchandise...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
P2: Part 1 Date Account Name Debit Credit July 1 Accounts Rec. 4200 Sales 4200 Cost of Goods Sold 2520 Inventory 2520 3 Invent. Expense 7600 Acc. Payable 7600 5 Shipping Expense 580 Cash 580 8 Merchandise Exp. 6800 Acc. Payable 6800 12 Freight in Exp. 400 Acc. Payable 400 15 Accounts Pay. 1200 Inventory 1200 17 Acc. Rec. 2400 Sales 2400 Cost of Goods Sold 1440 Inventory 1440 18 Cash 2000 Sales 2000 Cost of Goods Sold 1200 Inventory 1200 24 Sales Ret and Allow. 400 Acc. Rec. 400 Inventory 250 COGS 250 25 Acc. Payable 6400
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cash 6400 Cash 3800 Acc. Rec. 3800 Part 2: I think that these are comparable but not equivalent. I think that sales is the total amount of sales a company has but does not include returns where as just net sales would include returns. P3. Dan’s Sports Equipment Company Net Sales 433,912 Sales returns and allowances 11,250 Cost of Goods Sold Merchandise Inventory 81222 Purchases 221,185 Purchases returns and allowances 30,238
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Freight-In 10,078 Net Cost of Purchases Merchandise After 76664 COG 242,513 Gross Margin 464150 Operating Expenses 372276 Net Profit 122334 2. I would basically use that sheet to tell me if they are making money or losing money, I would also want to see the owners equity and also the balance sheet just to make sure the company isnt cheating on certain things or something. C3 Because the dollar is weak compared to the Euro, every time they charge say, .99 Euros they are actually getting about a 1.10 or so in American dollars. Now, after a while this adds up to quite a bit of money and that is why they did more in Europe than in America. The sold probably about the same, maybe even less but they got more money in American dollars because of the ratio of dollar to Euros....
View Full Document

Page1 / 3

chap6 - Freight-In 10,078 Net Cost of Purchases Merchandise...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online