The following information is provided for Kelly Plumbing Supply. Cash received from customers during December 20X1 ..............
Question:
The following information is provided for Kelly Plumbing Supply.
Cash received from customers during December 20X1 .............. $387,000
Cash paid to suppliers for inventory during December 20X1 ....... 131,000
Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 20X1. Accounts receivable at December 31, 20X1, totaled $141,000.
Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 20X1, to December 31, 20X1. The balance in the inventory account decreased by $39,000 over the same period.
Required:
What is gross profit for the month of December under accrual accounting?
Step by Step Answer:
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer