On January 1, 2020, Christel Madan Corporation had inventory of $50,000. At December 31, 2020, Christel Madan
Question:
On January 1, 2020, Christel Madan Corporation had inventory of $50,000. At December 31, 2020, Christel Madan had the following account balances.
Freight-in .................................................................... $ 4,000
Purchases ................................................................... 509,000
Purchase discounts ................................................... 6,000
Purchase returns and allowances .......................... 2,000
Sales revenue ........................................................... 840,000
Sales discounts ........................................................ 5,000
Sales returns and allowances ................................ 10,000
At December 31, 2020, Christel Madan determines that its ending inventory is $60,000.
Instructions
a. Compute Christel Madan's 2020 gross profit.
b. Compute Christel Madan's 2020 operating expenses if net income is $130,000 and there are no non-operating activities.
Ending InventoryThe 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 =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a Sales revenue 840000 Less Sales returns and allowances 10000 Sales discounts 5000 15000 ...View the full answer
Financial and Managerial Accounting
ISBN: 978-1119392132
3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
