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On September 30, 2012, a fire at Elusive Company's only warehouse cause severe damage to its entire inventory. Based on recent history, the entity has a gross profit of 30% on cost of sales. The following information is available from the records for the nine months ended September 30, 2012: Inventory- January 1 Purchases Net sales A physical inventory disclosed usable damaged goods which can be sold to a jobber for P 50,000. Using the gross profit method, what is the estimated cost of goods sold for the nine months ended September 30, 2012? 550,000 3,000,000 3,640.000 PROBLEM 5-28 (AICPA Adapted) Feint Company began operations on January 1, 2012. The following information is available for the year ended December 31, 2012: Total merchandise purchases Merchandise December 31 Collections from customers 4,000,000 All merchandise is marked to sell at 40% above cost. All sales are credit sales and all receivables are collectible. What is the balance of accounts receivable on December 31, 2012? inventory at Account receivable. January 1 Accounts receivable collected Cash sales 7,000,000 1,400,000 PROBLEM 5-29 (AICPA Adapted) Certain information relative to the operations for 2012 of Greenhorn Company follows: 800.000 2,600,000 500,000 Inventory, January 1 1,200,000 1,100,000 Inventory, December 31 Purchases 2,000,000 Gross profit on sales 900,000 What is the balance of accounts receivable on December 31, 2012? PROBLEM 5-30 (AICPA Adapted) The following data pertain to Hectic Company for the current year: Accounts receivable, January 1 Accounts receivable, December 31 Turnover of accounts receivable Inventory, January 1 Purchases Gross profit rate Hint: Net sales = Average accounts receivable x turnover What is the estimated inventory on December 31? 1,100,000 1,300,000 5 to 1 1,800,000 4,500,000 40% On September 30, 2012, a fire at Elusive Company's only warehouse cause severe damage to its entire inventory. Based on recent history, the entity has a gross profit of 30% on cost of sales. The following information is available from the records for the nine months ended September 30, 2012: Inventory- January 1 Purchases Net sales A physical inventory disclosed usable damaged goods which can be sold to a jobber for P 50,000. Using the gross profit method, what is the estimated cost of goods sold for the nine months ended September 30, 2012? 550,000 3,000,000 3,640.000 PROBLEM 5-28 (AICPA Adapted) Feint Company began operations on January 1, 2012. The following information is available for the year ended December 31, 2012: Total merchandise purchases Merchandise December 31 Collections from customers 4,000,000 All merchandise is marked to sell at 40% above cost. All sales are credit sales and all receivables are collectible. What is the balance of accounts receivable on December 31, 2012? inventory at Account receivable. January 1 Accounts receivable collected Cash sales 7,000,000 1,400,000 PROBLEM 5-29 (AICPA Adapted) Certain information relative to the operations for 2012 of Greenhorn Company follows: 800.000 2,600,000 500,000 Inventory, January 1 1,200,000 1,100,000 Inventory, December 31 Purchases 2,000,000 Gross profit on sales 900,000 What is the balance of accounts receivable on December 31, 2012? PROBLEM 5-30 (AICPA Adapted) The following data pertain to Hectic Company for the current year: Accounts receivable, January 1 Accounts receivable, December 31 Turnover of accounts receivable Inventory, January 1 Purchases Gross profit rate Hint: Net sales = Average accounts receivable x turnover What is the estimated inventory on December 31? 1,100,000 1,300,000 5 to 1 1,800,000 4,500,000 40%
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Problem 528 To estimate the cost of goods sold using the gross profit method we need to find the estimated sales and the estimated gross profit percen... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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