Question

Presented below is information for Cullumber Company for the month of January 2017.

Answer 1

Answer:

you cannot journalize these transactions. you can prepare an income statement which is not the same:

Sales revenue                                   $393,500

Sales discounts ($8,800)

Sales allowances ($18,600)             ($27,400)

Net sales revenue                             $366,100

Cost of goods sold                         ($205,200)

Gross profit                                       $160,900

Operating expenses:

Rent ($33,000)

Freight out ($8,200)

Insurance ($13,600)

Salaries ($60,200)                          ($150,000)

Operating income                              $10,900

Income taxes                                      ($5,300)

Net income                                          $5,600

Other comprehensive income          $2,000

Total income                                       $7,600