Asked by Ronnie
I need help to journalize these transactions for accounting. Samantha purchased inventory costing 125,000 and sold 70% of the goods for 162,500 all purchases and sales were on account She later collected 25% of the accounts receivable
Which is the perpetual inventory system inventory, revenues and expenses on financial statements, report gross profits on the appropriate statement.
Which is the perpetual inventory system inventory, revenues and expenses on financial statements, report gross profits on the appropriate statement.
Answers
Answered by
Damon
This is a business problem. Please say that in your subject line so we Physics and History teachers do not waste time.
Answered by
shawn
closing inventory (under perpetual system): 125,000 x 30% = $37,500 (Income statement and bal sheet)
Sales Revenue : $162,500 (Income Statement)
Cost of goods sold (expense):
125,000 x 70% = $87,500 (Income Statement)
Gross profit: 162,500 - 87,500= $75,000 (Income statement)
A/c Payable: $125,000 (Bal Sheet)
A/c receivable: 162,500 x 75%= $121,875 (bal Sheet)
Sales Revenue : $162,500 (Income Statement)
Cost of goods sold (expense):
125,000 x 70% = $87,500 (Income Statement)
Gross profit: 162,500 - 87,500= $75,000 (Income statement)
A/c Payable: $125,000 (Bal Sheet)
A/c receivable: 162,500 x 75%= $121,875 (bal Sheet)