ACC281.Week2.IndividualExercises - E5-13 6-Sep Merchandise...

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E5-13 6-Sep Merchandise Inventory 1600 Cash 1600 9-Sep Merchandise Inventory 80 Cash 80 10-Sep Accounts Payable 42 Merchandise Inventory 42 12-Sep Accounts Receivable 806 Sales 806 COGS 546 Merchandise Inventory 546 14-Sep Sales Returns and Allowances 31 Accounts Receivable 31 Merchandise Inventory 21 COGS 21 20-Sep Accounts Receivable 930 Sales 930 COGS 630 Merchandise Inventory 630
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2008 2009 Sales 210000 250000 COGS Beginning Inventory 32000 39000 Cost of goods purchased 173000 202000 cost of goods available for sale 205000 241000 ending inventory 39000 52000 cost of goods sold 166000 189000 gross profit 44000 61000 The cumulative ef ect of the inventory er or on total gross profit for the 2 years is zero because inventory was overstated in 2008 by $5000 but understated in 2009 by $5000 so the er or balanced itself out.
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ACC281.Week2.IndividualExercises - E5-13 6-Sep Merchandise...

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