Official Brandss general ledger and supplementary records at the end of its current period reveal the following.

Question:

Official Brands’s general ledger and supplementary records at the end of its current period reveal the following.

Sales, gross Sales returns & allowances Sales discounts Cost of transportation-in Operating expenses $600,000


Required
1. Each member of the team is to assume responsibility for computing one of the following items. You are not to duplicate your teammates’ work. Get any necessary amounts to compute your item from the appropriate teammate. Each member is to explain his or her computation to the team in preparation for reporting to the class.

a. Net sales

b. Total cost of merchandise purchases

c. Cost of goods sold

d. Gross profit

e. Net income 

2. Check your net income with the instructor. If correct, proceed to step 3.
3. Assume that a physical inventory count finds that actual ending inventory is $76,000. Discuss how this affects previously computed amounts in step 1.

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Related Book For  book-img-for-question

College Accounting Ch 1-14

ISBN: 9781260904314

1st Edition

Authors: John Wild, Vernon Richardson, Ken Shaw

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