PT Barnum Company uses the periodic inventory system and has the following data from its December...

 

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PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records: Sales Sales Returns & Allowances Freight In on Inventory Purchases Delivery Expense on Sales Purchase Returns & Allowances Purchases Inventory December 1 Average gross profit percentage = 25% $44,000 $2,000 $400 $300 $500 $18,000 $13,726 Because of a wildcat strike by Barnum's warehouse employees that prevents an inventory count, Barnum decides to use the "Gross Profit Method" to estimate the December 31 Inventory for purpose of generating its monthly financials. Required 1: What is the "Cost of Merchandise Available for Sale" for PT Barnum? $ 31626 Required 2: What is the net cost of purchases that will be used to calculate PT Barnum net income? $ 17900 Required 3: What is the amount of net sales that will be used to calculate PT Barnum net income? $ 41700 Required 4: What is the Cost of Goods Sold that will be used to calculate PT Barnum net income? $ 31275 Required 5: What is the Gross Profit that will be reported in PT Barnum Income Statement? $ 10425 Required 6: What is the value of Ending Inventory PT Barnum will report in the Balance Sheet of December 31st? $ 351 PT Barnum Company uses the periodic inventory system and has the following data from its December accounting records: Sales Sales Returns & Allowances Freight In on Inventory Purchases Delivery Expense on Sales Purchase Returns & Allowances Purchases Inventory December 1 Average gross profit percentage = 25% $44,000 $2,000 $400 $300 $500 $18,000 $13,726 Because of a wildcat strike by Barnum's warehouse employees that prevents an inventory count, Barnum decides to use the "Gross Profit Method" to estimate the December 31 Inventory for purpose of generating its monthly financials. Required 1: What is the "Cost of Merchandise Available for Sale" for PT Barnum? $ 31626 Required 2: What is the net cost of purchases that will be used to calculate PT Barnum net income? $ 17900 Required 3: What is the amount of net sales that will be used to calculate PT Barnum net income? $ 41700 Required 4: What is the Cost of Goods Sold that will be used to calculate PT Barnum net income? $ 31275 Required 5: What is the Gross Profit that will be reported in PT Barnum Income Statement? $ 10425 Required 6: What is the value of Ending Inventory PT Barnum will report in the Balance Sheet of December 31st? $ 351

Answer rating: 100% (QA)

Answer Required 1 The cost of merchandise available for sale can be calculated using the following formula Cost of Merchandise Available for Sale Total Cost of Goods Sold Beginning Inventory Net Purch... View the full answer