Complete the following using the gross profit method. Assume a normal gross profit rate of 34% of netsales.
Answer to relevant QuestionsThe Lane Electric Company uses the perpetual inventory system. Record these transactions in a two-column journal.201XFeb. 3 Purchased 35 Model 77DX light fixtures on account from Flashing Electric at total cost of $1,400; ...Hobbs Company’s March 1 inventory had a cost of $58,600 and a retail value of $74,800. During March, net purchases cost $253,400 with a retail value of $405,200. Net sales at retail for Hobbs Company during March were ...Fullerton Company’s October 1 inventory had a cost of $58,200 and a retail value of $76,000. During October, net purchases cost $231,000 with a retail value of $406,000. Net sales at retail for Fullerton Company during ...The Alton Company uses the perpetual inventory system. Record the transactions in a two-column journal. All credit sales are n/30.201XJune 5 Purchased merchandise on account totaling $2,100; terms n/30.6 Sold merchandise on ...Given the balance in the Allowance for Doubtful Accounts of $290 credit, prepare adjusting entries for Bad Debts based on the following assumptions:a. Bad debts to be 3.5% of net credit sales or $720.b. Based on aging of ...
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