Reference no: EM132640949
Questions -
Q1. Given below are account balances for Charlie Company:
Gross sales, $96,000
Sales returns and allowances, $7,000
Selling expenses, $12,000
Cost of goods sold, $40,000
Interest expense, $3,000
How much is the gross profit margin?
Q2. Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000. If payment occurs on January 21, the journal entry would include a credit to:
Q3. Merchandise was returned to a supplier. The goods were previously purchased on account. The goods had not been paid for and there were no discounts. Assuming a periodic system, what journal entry is needed by the purchaser to record the return?
Q4. Alpha Company provided the following data concerning its income statement: sales, $970,000; purchases, $356,000; beginning inventory, $255,000; ending inventory, $257,000; operating expenses, $102,000; freight-in, $5,000; sales discounts, $15,000; purchases discounts, $15,000; sales returns & allowances, $89,000; and purchases returns & allowances, $35,000. The data are complete and provide the basis for preparation of an income statement. How much is net income?
Q5. Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
Alpha Company sold on account merchandise costing $3,000 to Bravo Company on May 2, 2016. Selling price was $4,500. Freight charges related to this transaction of $200 were paid by Alpha Company.
Bravo Company returned, to Alpha Company, merchandise with an original cost to Alpha of $300 on May 3, 2016. Merchandise was sold to Bravo for $450
Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
Q6. Alpha Company replenished a $500 petty cash fund. The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $180. The journal entry to reflect replenishment would include a?