At the beginning of 2013, the Bradley Company had the following balances in its accounts Cash $ 8,600 Inventory 18,000 Common stock 20,000 Retained earnings 6,600 During 2014, the company experienced the following events 1 Purchased inventory that cost $4,400 on account from Bivins Company under terms 1 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $190 were paid in cash 2 Returned $400 of the inventory that it had purchased because the inventory was damaged in transit The seller agreed to pay the return freight cost 3 Paid the amount due on its account payable to Bivins Company within the cash discount period 4 Sold inventory that had cost $6,000 for $11,000 on account, under terms 2 10, n 45 5 Received merchandise returned from a customer The merchandise originally cost $800 and was sold to the customer for $1,450 cash The customer was paid $1,450 cash for the returned merchandise 6 Delivered goods FOB destination in Event 4 Freight costs of $120 were paid in cash 7 Collected the amount due on the account receivable within the discount period 8 Took a physical count indicating that $15,500 of inventory was on hand at the end of the accounting period Prepare a multistep income statement BRADLEY COMPANY Income Statement For the Year Ended December 31, 2014 Operating expenses Operating expenses

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Posted on Sep 15, 2024

At the beginning of 2013, the Bradley Company had the following balances in its accounts:

During 2014, the company experienced the following events:

1.	Purchased inventory that cost $4,400 on account from Bivins Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash.
2.	Returned $400 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3.	Paid the amount due on its account payable to Bivins Company within the cash discount period.
4.	Sold inventory that had cost $6,000 for $11,000 on account, under terms 2/10, n/45.
5.	Received merchandise returned from a customer. The merchandise originally cost $800 and was sold to the customer for $1,450 cash. The customer was paid $1,450 cash for the returned merchandise.
6.	Delivered goods FOB destination in Event 4. Freight costs of $120 were paid in cash.
7.	Collected the amount due on the account receivable within the discount period.
8.	Took a physical count indicating that $15,500 of inventory was on hand at the end of the accounting period.

Prepare a multistep income statement. BRADLEY COMPANY Income Statement For the Year Ended December 31, 2014 Operating expenses Operating expenses