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Anit [1.1K]
3 years ago
9

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

Business
1 answer:
Law Incorporation [45]3 years ago
7 0

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)             <u> ($27,400)</u>

Net sales revenue                             $366,100

Cost of goods sold                         <u>($205,200)</u>

Gross profit                                       $160,900

Operating expenses:

Rent ($33,000)

Freight out ($8,200)

Insurance ($13,600)

Salaries ($60,200)                          <u>($150,000)</u>

Operating income                              $10,900

Income taxes                                      <u>($5,300)</u>

Net income                                          $5,600

Other comprehensive income         <u>  $2,000</u>

Total income                                       $7,600

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In the information provided, the respondents were selected from a group of people who on a balance of probability were already inclined to decline because it was a list of dissatisfied customers. The chances of them declining to respond or responding with a negative were higher than the chances of them indicating that they would buy and this defeats the purpose of the research. The research ought to have also included a sample of respondents who didn't have the product, who had enjoyed the services of the company and were content, those who didn't even know what the product did until they got the survey.

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Cheers

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3 years ago
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