As the accountant for Synergy Solutions, you are in the process of preparing the income statement for

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As the accountant for Synergy Solutions, you are in the process of preparing the income statement for the year ended December 31, 2009. In doing so, you have noticed that merchandise costing $3,500 was sold for $5,000 on December 31.

Before the effects of the $5,000 sale were taken into account, the relevant income statement figures were:

Sales revenue ..............................................................$95,000

Beginning inventory ...................................................... 21,000

Purchases ................................................................... 38,000

Ending inventory .......................................................... 19,000

Prepare a partial income statement through gross margin if the sale is recorded in the 2009 accounting record; the inventory is included in the ending physical inventory count.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0324645576

10th edition

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice

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