Discuss how gross profit on sales in calculated for a retail entity. Why are sales returns and
Question:
Discuss how gross profit on sales in calculated for a retail entity. Why are sales returns and allowances and purchase returns and allowances recorded in contra accounts to sales and purchases respectively? Why is freight inwards added to purchases but freight outwards treated as an expense?
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This question assumes the use of the periodic inventory system To calculate gross profit on sales su...View the full answer
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Marcus Solomon
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Related Book For 
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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