XYZ.com, being a startup, had a zero beginning inventory. They spent $425,000 on inventory items, receiving...
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XYZ.com, being a startup, had a zero beginning inventory. They spent $425,000 on inventory items, receiving $12,000 for prompt payment and paying $10,000 for freight. Their closing inventory is $84,000. Determine the cost of goods sold and the closing entries for a periodic inventory. Prepare an income statement using your calculations. Show gross profit and net income. You will need the following information: Sales were $1,375,000.00 Administrative and sales expenses $225,000.00 Interest on debt is $97,000.00 Tax paid at 30% XYZ.com, being a startup, had a zero beginning inventory. They spent $425,000 on inventory items, receiving $12,000 for prompt payment and paying $10,000 for freight. Their closing inventory is $84,000. Determine the cost of goods sold and the closing entries for a periodic inventory. Prepare an income statement using your calculations. Show gross profit and net income. You will need the following information: Sales were $1,375,000.00 Administrative and sales expenses $225,000.00 Interest on debt is $97,000.00 Tax paid at 30%
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Answer rating: 100% (QA)
To calculate the cost of goods sold COGS for a periodic inventory system we use the formula COGS Beg... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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