I do not know how to figure out increase in estimated returns inventory.
Bookmarks People Window Help 192.168.2 ge.com elSBN-9781337272278&id 196226352&snapshotld 545965& ising Businesses Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Excel Cash 125,000 Purchases 340,000 Purchases Returns and Allowances 415,000 25,000 Freight i $4,100, Accounts Receivable Merchandise Inventory, July 1, 2018 Estimated Returns Inventory Office Supplies Prepaid Insurance 32,000 3,000 45,000 580.000 315,000 Purchases Discounts 9000 Sales Salaries Expense 18.000 Advertising Expense 00,000 Delivery Expense 50,000 Depreciation Expense- Store Equipment Store Equipment 12000 Store Equipment Office Equipment 190,000 Miscellianeous Selling Expense 250.000 Office Salaries Expense Rent Expense 110.000 Insurance Expense 85.000 office Supplies Expense 20.000 Depreciation Expense- 3,000 17,000 5,000 Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable Unearned Rent Notes Payable Amy Gant, Capital Amy Gant Deawing 9000 ofice Equipment 6.000 Miscelaneous Administrative Expense 50.000 Rent Revenue 16,000 820,000 nterest Expense 2500 275,000 WRD 27e PRO-.xlsx G WRD 27e PR O...xisx Bible Respons...ocxcarr reading te...df ^ .7 192.168. y Bookmarks People Window Help elSBN-9781337272278&id 196226352&snapshotld 545965& gage. dising Businesses 4000 9000 Office Equipment Salaries Payable 32,500 2,500 Notes Payable Amy Gant, Capital Amy Gant Drawing Sales 50,000 Rent Revenue 820,000 Interest Expense 275,000 6.590,000 Instructions 1Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019 4. What would the net income have been if the perpetual inventory system had been used? e Respons...docxcarr reading tke.. 7 MacBook Ai Cut Copy Format + Mer fice Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Upda F G HI Income Statement For the Year Ended June 30, 2019 Sales Cost of merchandise sold: $ 6,590,000 Merchandise inventory, July 1, 2018 Cost of merchandise purchased $ 415,000 Purchases $4,100,000 Purchases retums and allowances 32,000) Purchases discounts Net purchases 4,055,000 45,000 Freight in Total cost of merchandise purchased Merchandise available for sale Merchandise inventory, June 30, 2019 4.100,000 $4,515,000 Cost of merchandise sold before estimated retums $4,007,000 Increase in estimated retums inventory Cost of merchandise sold Gross proft Expenses: Seling expenses: Sales salaries expense Advertising expense Delivery expense Depreciation expense store equipment Miscellaneous selling expense S580,000 315,000 18,000 12,000 28 Total seling expenses 953 Administrative expenses Office salaries expense Rent expense Insurance expense Office supplies expenso Depreciation expense-office equipment Miscellaneous administrative expense 375,000 43,000 17,000 5,000 4,000 16.000 Total administrative expenses 460,000 int Bookmarks People Window Help 192.168.2 ge.com elSBN-9781337272278&id 196226352&snapshotld 545965& ising Businesses Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Excel Cash 125,000 Purchases 340,000 Purchases Returns and Allowances 415,000 25,000 Freight i $4,100, Accounts Receivable Merchandise Inventory, July 1, 2018 Estimated Returns Inventory Office Supplies Prepaid Insurance 32,000 3,000 45,000 580.000 315,000 Purchases Discounts 9000 Sales Salaries Expense 18.000 Advertising Expense 00,000 Delivery Expense 50,000 Depreciation Expense- Store Equipment Store Equipment 12000 Store Equipment Office Equipment 190,000 Miscellianeous Selling Expense 250.000 Office Salaries Expense Rent Expense 110.000 Insurance Expense 85.000 office Supplies Expense 20.000 Depreciation Expense- 3,000 17,000 5,000 Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable Unearned Rent Notes Payable Amy Gant, Capital Amy Gant Deawing 9000 ofice Equipment 6.000 Miscelaneous Administrative Expense 50.000 Rent Revenue 16,000 820,000 nterest Expense 2500 275,000 WRD 27e PRO-.xlsx G WRD 27e PR O...xisx Bible Respons...ocxcarr reading te...df ^ .7 192.168. y Bookmarks People Window Help elSBN-9781337272278&id 196226352&snapshotld 545965& gage. dising Businesses 4000 9000 Office Equipment Salaries Payable 32,500 2,500 Notes Payable Amy Gant, Capital Amy Gant Drawing Sales 50,000 Rent Revenue 820,000 Interest Expense 275,000 6.590,000 Instructions 1Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019 4. What would the net income have been if the perpetual inventory system had been used? e Respons...docxcarr reading tke.. 7 MacBook Ai Cut Copy Format + Mer fice Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Upda F G HI Income Statement For the Year Ended June 30, 2019 Sales Cost of merchandise sold: $ 6,590,000 Merchandise inventory, July 1, 2018 Cost of merchandise purchased $ 415,000 Purchases $4,100,000 Purchases retums and allowances 32,000) Purchases discounts Net purchases 4,055,000 45,000 Freight in Total cost of merchandise purchased Merchandise available for sale Merchandise inventory, June 30, 2019 4.100,000 $4,515,000 Cost of merchandise sold before estimated retums $4,007,000 Increase in estimated retums inventory Cost of merchandise sold Gross proft Expenses: Seling expenses: Sales salaries expense Advertising expense Delivery expense Depreciation expense store equipment Miscellaneous selling expense S580,000 315,000 18,000 12,000 28 Total seling expenses 953 Administrative expenses Office salaries expense Rent expense Insurance expense Office supplies expenso Depreciation expense-office equipment Miscellaneous administrative expense 375,000 43,000 17,000 5,000 4,000 16.000 Total administrative expenses 460,000 int
