Qustion # 12

b. Production costs Purchase costs Freight costs d 12 Lindsey Corporation had the following account balances: Sales Revenue Beginning inventory Purchases Purchase discounts Freight-in Ending inventory $200.000 40.000 80.000 3.000 1.000 30.000 Given the information above, gross margin (= Sales Revenue - Cost of Goods Sold) is Sales Revenue $200.000 Beginning inventory 40.000 Purchases 80.000 Purchase discounts 3.000 Freight-in 1.000 Ending inventory 30.000 Purchase returns and allowances 2.000 $36.000 b. $94.000 $106.000 $114.000 d 13. When crediting accumulated depreciation account to record a depreciation expense, which of the following best describes the impact of this transaction