Reference no: EM132379704

Question

Part 1) Given below are account balances for Charlie Company:

Gross sales, $92,000, Sales returns and allowances, $6,000, Selling expenses, $12,000, Cost of goods sold, $42,000, Interest expense, $3,000.

How much is the gross profit margin? (enter your percentage as a decimal rounded to two decimal places. Example - enter 46% as .46)

Part 2)

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?

Part 3)

Alpha Company provided the following data concerning its income statement: sales, $1,045,000; purchases, $467,000; beginning inventory, $215,000; ending inventory, $272,000; operating expenses, $105,000; freight-in, $5,000; sales discounts, $27,000; purchases discounts, $15,000; sales returns & allowances, $119,000; and purchases returns & allowances, $41,000. The data are complete/final and provide the basis for preparation of an income statement. How much is net income?