Question
Smith Company purchased inventory for $5000 on account. Freight cost was $600 paid in cash. The Freight terms were FOB destination. The inventory was sold
Smith Company purchased inventory for $5000 on account. Freight cost was $600 paid in cash. The Freight terms were FOB destination. The inventory was sold to customers for $8000. Freight cost was $600 paid in cash. The freight terms were FOB shipping point. Based on this information,
A. Gross margin would be $2400
B. Net income would be $3000
C. Net income would be $1800
D. None of the answers are correct.
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Auditing The Food And Beverage Operation An Operational Audit Approach Volume 1
Authors: Hans L. Steiniger Certified Public Accountant Certified Internal Auditor
1st Edition
1424167698, 978-1424167692
