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help needed with answers for questions 6-20, 6-21, 6-23 of (a) and (b)? M6-17 Determining the Cause of Increasing Gross Profit Fortune Brands Home &
help needed with answers for questions 6-20, 6-21, 6-23
of (a) and (b)? M6-17 Determining the Cause of Increasing Gross Profit Fortune Brands Home & Security, Inc., sells Master Lock padlocks. It reported an increase in net sales from $4.0 billion in 2014 to $4.6 billion in 2015, and an increase in gross profit from $1.4 billion in 2014 to $1.6 billion in 2015. Based on these numbers, determine whether the change in gross profit represents (a) a decrease in gross profit per sale, (b) an increase in sales volume, or a combination of (a) and (b). M6-18 Understanding Relationships among Gross Profit and Inventory If net sales are $300,000, cost of goods available for sale is $280,000, and gross profit percentage is 35%, what is the amount of ending inventory? M6-19 Recording Journal Entries for Purchase Discounts (Gross Method) On October 5, your company buys and receives inventory costing $5,000, on terms 2/30, n/60. On October 20, your company pays the amount owed relating to the October 5 purchase. Prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the gross method. M6-20 Recording Journal Entries for Purchase Discounts (Net Method) Using the information in M6-19, prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the net method. M6-21 Recording Journal Entries for Sales and Sales Discounts (Gross Method) Using the information in M6-9, prepare the journal entries needed at (a) time of sale and (b) collection of payment from the customer, assuming the company uses a perpetual inventory system with the gross method of recording sales discounts. M6-23 Journal Entries to Record Sales Discounts (Gross Method) Inventory that cost $500 is sold for $700, with terms of 2/30, n/60. Give the journal entries to record (a) the sale of merchandise and (b) collection of the accounts receivable. Assume the sales discount is taken and accounted for using the gross method, and a perpetual inventory system is usedStep by Step Solution
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