Simon Cowell Enterprises had the following accounts for the year ended, December 31, 2021: Gross sales P4,350,000; sales returns and discounts were 9% & 8% respectively in relation to gross sales; January 1- inventory P180,000; Purchases was 13 times of the beginning inventory; purchases returns and discounts were 6% and 5% respectively of gross purchases; Freight cost of the goods purchased was 7% of gross purchases; December 31-inventory was 120% of the January 1 inventory; operating expenses were 40% of cost of sales. Use the periodic inventory system? What was the net profit of Cowell for the year?

Answer rating: 100% (QA)

Gross Sales 1 Jan31 Dec 2021 435000000 Less Sales Returns 9 39150000 Less Discounts 8 34800000 NET S... View the full answer