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.

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Related Book For  book-img-for-question

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

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