On January 1, 2021, Casselberry Retailers had inventory of $50,000. On December 31, 2021, total inventory on
Question:
On January 1, 2021, Casselberry Retailers had inventory of $50,000. On December 31, 2021, total inventory on hand was $66,000. Casselberry reported the following account balances on December 31:
Freight in ................................................................ $ 4,000
Purchases ............................................................ 509,000
Purchase returns and allowances ......................... 2,000
Purchase discounts ................................................. 6,000
Sales ..................................................................... 840,000
Sales discounts ........................................................ 5,000
Sales returns and allowances .............................. 10,000
Instructions
a. Calculate Casselberry Retailers’ 2021 gross profi t.
b. Calculate Casselberry Retailers’ 2021 operating expenses if profit is $130,000 and there are no non-operating activities.
Step by Step Answer:
a Apr 5 Purchases 12000 Accounts Payable 12000 Purchase on account 6 Freight In 300 Cas...View the full answer
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
