Gerald's department store is a merchandising company that uses the periodic inventory system. Selected account balances are
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Question:
Sales .................................................$175,000
Purchases ...........................................90,000
Inventory (Beginning) ........................23,000
Inventory (Ending) .............................17,000
Purchase returns and allowances ....3,000
Purchase discounts ...........................7,000
Transportation-in ...............................4,000
Sales discounts ...................................8,000
Sales returns and allowances ...........5,000
Gerald's gross profit is:
a). $68,000
b). $72,000
c). $78,000
d). $85,000
e). Not determinable from the information given rn
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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