A603 Week 2 - COS Exercise (2) Gillespie

A603 Week 2 - COS Exercise (2) Gillespie -...

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MBA or MSA A603 – Intermediate Accounting Applications Week 2 COS Exercise Tim Gillespie Week 2 Homework Cost of Sales Exercise (Periodic inventory system – indirect method) $17,500 200,000 4,000 1,000 149,400 4,000 $2,000 The trial balance of FirstRate, Inc. at the end of its fiscal year, August 31, 20X1 included the following accounts and balances: Merchandise inventory Sales Sales returns and allowances INSTRUCTION: Purchase returns and allowances Using a costed physical count of goods on hand at August 31, 20X1, the company determined that its merchandise inventory at that date was $25,000 Purchases Freight in Freight out Complete the schedule below to determine COS, gross profit, and gross margin (percentage) for the company's FYE August 31, 20X1. Prepare the required adjusting journal entry based on this schedule. (Continued)
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This note was uploaded on 02/25/2012 for the course ACCOUNTING 401 taught by Professor Johnson during the Spring '12 term at Regis University.

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A603 Week 2 - COS Exercise (2) Gillespie -...

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