Answer: Option (B) is correct.
Explanation:
Net sales = Gross sales - Sale return
= $3,600,000 - 34,000
= $3,566,000
Gross profit = Net sales - COGS
= $3,566,000 - $1,200,000
= $2,366,000
Total Income = Gross profit - S& A expense - Prior period expense + Gain on sale of securities + Gain on disposal of business segment
= $2,366,000 - $500,000 - $59,000 + $8,000 + $4,000
= $1,819,000
Net Income for Year 2 = Total Income - [email protected]%
= $1,819,000 - $545,700
= $1,273,300
Answer:
Closing Stock = <u>38000 </u>
Explanation:
Net Sales = COGS + Gross Profit
- <u>Net sales</u> = sales - sales return = 185000 - 6000 = 179000
- <u>Gross Profit</u> = 60% of sales (as per gross profit ratio)
= 60% of 179000 = 107400
- <u>COGS </u>= Opening Stock + Net Purchase + direct expenses - Closing Stock
* <u>Net purchase</u> = Purchase - purchase return = 111000 - 4500 = 106500
*<u>Direct Expense</u> = Freight Inwards = 3100
Putting all values in formula :- Net Sales = COGS + Gross Profit
179000 = (0 + 106500 + 3100 - closing stock) + 107400
179000 = 106500 + 3100 + 107400 - closing stock
179000 = 217000 - closing stock
closing stock = 217000 - 179000
closing stock = 38000
Answer: The asset's cost minus its accumulated depreciation.
Explanation: The book value of equipment owned by a company is the total worth of a company if it liquidated all its assets and substracted it's liabilities.
For easy computation it can be described as the Value of the Assets minute the accumulated depreciation for an equipment that depreciates according to time. Book value is of importance to the business as it helps to show what amount is actually the worth of a company when liquidated.
Answer:
$5,750
Explanation:
The computation of the balance in the allowance for doubtful accounts after bad debt expense is shown below:
= Account receivable × estimated percentage - credit balance of Allowance for doubtful accounts
= $295,000 × 0.03 - $3,100
= $8,850 - $3,100
= $5,750
By deducting the credit balance from the estimated amount we can find out the balance in the allowance for doubtful accounts
