Official Brands general ledger and supplementary records at the end of its current period reveal the following.Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000Sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000Sales discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000Cost of transportation- in . . . . . . . . . . . . . . . . . . . . . . 22,000Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000Merchandise inventory (beginning of period) . . . . . . $ 98,000Invoice cost of merchandise purchases . . . . . . . . . . . 360,000Purchase discounts received . . . . . . . . . . . . . . . . . . . . 9,000Purchase returns and allowances . . . . . . . . . . . . . . . . 11,000Merchandise inventory (end of period) . . . . . . . . . . . 84,000Required 1. Each member of the team is to assume responsibility for computing one of the following items. You are not to duplicate your teammates’ work. Get any necessary amounts to compute your item from the appropriate teammate. Each member is to explain his or her computation to the team in preparation for reporting to the class. a. Net sales b. Total cost of merchandise purchases c. Cost of goods sold d. Gross profite. Net income 2. Check your net income with the instructor. If correct, proceed to step 3. 3. Assume that a physical inventory count finds that actual ending inventory is $ 76,000. Discuss how this affects previously computed amounts in step 1.View Solution:
Official Brands general ledger and supplementary records at the end

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now