Assume that Office Outfitters Inc. in Question 13 experienced an abnormal inventory shrinkage of $56,900. Office Outfitters Inc. has decided to record the abnormal inventory shrinkage so that it would be separately disclosed on the income statement. What account would be increased for the abnormal inventory shrinkage?
Answer to relevant QuestionsDuring the current year, merchandise is sold for $1,375,000. The cost of the merchandise sold is $880,000.a. What is the amount of the gross profit?b. Compute the gross profit percentage (gross profit divided by sales).c. ...Summary operating data for Lock-World Company during the current year ended November 30, 2012, are as follows: cost of merchandise sold, $4,300,000; administrative expenses, $500,000; interest expense, $20,000; rent revenue, ...Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch Company returned $4,000 of the merchandise before payment was made and received full credit.a. If Top Notch Company ...Intrax Inc.’s perpetual inventory records indicate that $815,400 of merchandise should be on hand on December 31, 2012. The physical inventory indicates that $798,300 of merchandise is actually on hand. Illustrate the ...The following is an excerpt from a conversation between Eric Jackson and Carlie Miller. Eric is debating whether to buy a stereo system from First Audio, a locally owned electronics store, or Dynamic Sound Systems, an online ...
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