Identify the errors in the following income statement: Keepsakes Company Income Statement For the Year Ended February
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Keepsakes Company Income Statement For the Year Ended February 29, 2012 Revenue from sales: Sales...... $7,200,000 Add: Sales returns and allowances $275,000 Sales discounts 130,000 405,000 Gross sales .... $7,605,000 Cost of merchandise sold.. Income from operations... 4,075,000 $3,530,000 Expenses: Selling expenses.. Administrative expenses Delivery expense Total expenses $ 950,000 475,000 125,000 1,550,000 $1,980,000 Other expense: Interest revenue 30,000 $1,950,000 Gross profit....
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1 Sales returns and allowances and sales discounts should be deducted from not added to sales 2 Sale...View the full answer
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Related Book For
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
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