Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following transactions occured during 2014 for Gulf Corp. which uses a perpetual inventory system: (a) January 1: Gulf Corp.'s merchandise that cost $6,960
The following transactions occured during 2014 for Gulf Corp. which uses a perpetual inventory system: (a) January 1: Gulf Corp.'s merchandise that cost $6,960 was sold to Velor Inc. for $8,700 under credit terms of 2/30, n/60, FOB destination. (b) January 1: Gulf Corp. purchased merchandise from Zcom Inc. for $9,000 under credit terms of n/60, FOB destination. (c) January 2: Paid $100 shipping charges related to the January 1 sale. (d) January 3: Gulf Corp. purchased merchandise on credit from Vision Consulting Inc., terms n/60, $9,100, FOB destination. (e) January 3: After negotiations with Zcom Inc. concerning problems with the merchandise purchased on January 1, received a credit memorandum granting a price reduction of $600. (f) January 5: Gulf Corp.'s merchandise was sold to Southgate Inc. for $9,600 cash. The merchandise cost $7,680. (g) January 10: Gulf Corp. sold merchandise that cost $6,080 to Barton Corporation for $7,600 under credit terms of 2/10, n/30, FOB shipping point. (h) January 10: Issued a $800 credit memorandum to Velor Inc. for an allowance on goods sold on January 1. (i) January 31: Received Velor Inc.'s payment of the amount due from the January 1 sale. (j) February 9: Received the balance due from Barton Corporation for the sale dated January 10. (k) March 2: Paid the balance due to Zcom Inc. (I) March 4: Paid the balance due to Vision Consulting Inc. a) Calculate the net sales for Gulf Corp. during 2014: Net Sales: b) Calculate the cost of goods sold for Gulf Corp. during 2014: Cost of Goods Sold:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started