Selected amounts from the accounting records of Concord Supply Company at June 30, 19X9, were as follows:

\section*{Required}
1. Show the computation of Concord Supply's net sales, cost of goods sold, and gross margin for the year ended June 30, 19X9.
2. John Wilfong, president of Concord Supply, strives to earn a gross margin percentage of 40 percent. Did he achieve this goal?
3. Did the rate of inventory turnover reach the industry average of 2.8 ?
4. How will what you learned in this problem help you manage a business?

Transcribed Image Text:

Selling expenses. Equipment Purchase discounts. Accumulated depreciation-equipment. Note payable......... Sales discounts. General expenses.. Accounts receivable $ 29,800 44,700 1,300 6,900 30,000 3,400 16,300 22,600 Accounts payable. 23,800 Cash........ 13,600 Purchases of inventory. 98,100 Freight in......... 4,300 Sales revenue. 173,100 Purchase returns and allowances. 1,400 Salary payable.......... 1,800 Retained earnings.... 36,000 Sales returns and allowances.. 12,100 Inventory: June 30, 19X8. 33,800 June 30, 19X9.. 38,500