Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions Balances at 3 1 January 2 0 0 9 : Debtors control account.............................$ 3 2 , 4 0 0 Creditors control account...........................$ 2 5

Instructions
Balances at 31 January 2009:
Debtors control account.............................$32,400
Creditors control account...........................$25,200
Inventory...................................................$30,000
Balances at 28 February 2009:
Debtors control account.............................$24,000
Creditors control account...........................$29,160
Inventory...................................................$36,000
Extract from cash payments journal at 28 February 2009:
Payments to creditors.................................$41,040
Additional Information:
a) Gross profit mark-up is 20% on cost
b) Inventory is kept on the perpetual system
c) All purchases and 80% of sales are on credit
 
 
Required:
a) Calculate purchases.
b) If purchases during February were $39,000 what is the Cost of Goods Sold for February?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the purchases we need to determine the change in the inventory balance from Ja... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions

Question

=+29. Battery recall. A company has discovered that a recent

Answered: 1 week ago