WEEK5ASSIGNMENT - Sales (a) (b) (c) $75,000 $108,000...

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Sales Gross Profit Net Income (a) 46,400 $28,600  17,800 $10,800  (b) $108,000  $70,000  38,000 8,500 $29,500  (c) 171,500 $71,900  $99,600  $39,500  60,100 Cost of Goods  Sold Operating  Expenses    $75,000
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Total sales are 280,000+100,000=380,000 Sales Less: Sales Returns and Allowances -21,000 Sales Discounts (13,000 Net Sales
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380,000 346,000
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Net Purchases is calculated as Purchases Less: Purchase Returns and Allowances Less: Purchase Discounts Net Purchases Cost of Goods Purchased = Net Purchases + Freight-in = 381,000+16,000=397,000
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400,000 -11,000 -8,000 381,000
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1. April 5 Merchandise Inventory Dr 20,000 Accounts Payable Cr 2. April 6 Merchandise Inventory Dr 900 Cash Cr 3. April 7 Equipment Dr 26,000 Accounts Payable Cr 4. April 8 Accounts Payable Dr 4000 Merchandise Inventory Cr 5. April 15 Accounts Payable Dr 16,000 ($20,000 – $4,000) Merchandise Inventory 320 ($20,000 – $4,000) X 2% Cash Cr ($16,000 – $320) In this case no discount would be taken and the total balance of 20,000-4,000=1 May 4 Accounts Payable Dr 16,000 Cash Cr
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20,000 900 26,000 4,000 15,680 16,000 would be paid 16,000
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1. Dec. 3 Accounts Receivable Dr
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This note was uploaded on 03/29/2010 for the course ACCT 349 349 taught by Professor Fortune during the Spring '09 term at University of Phoenix.

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WEEK5ASSIGNMENT - Sales (a) (b) (c) $75,000 $108,000...

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