Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Cecily Cedric is a toy manufacturer producing toys that are shipped to various retail customers upon receipt of their purchase orders. Sales are billed after
Cecily Cedric is a toy manufacturer producing toys that are shipped to various retail customers upon receipt of their purchase orders. Sales are billed after shipment. The company estimates that approximately 2 per cent of credit sales prove to be uncollectable. Cecily Cedric entered into the table-top game market and offer a promotion on their latest game called the FoxBox1. Transactions for the year 2022 were as follows: 1. 12,000 FoxBox1 were manufactured at a cost of $30 each. 2. 10,000 FoxBox1were sold for $50 each. 3. Cash was collected on 6,000 of the FoxBox1 sold. What was the reported profit for the year 2022 if revenue was recognised at the point of sale? a. $0 O b. $190,000 c. $140,000 O d. $120,000 X O e. $320,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started