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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 64
Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage
Larry's Building Supplies (LBS) is a locally owned and operated hardware store. LBS uses a perpetual inventory system.
The following transactions (summarized) have been selected from 2013:
Required:
1. Compute Sales Revenue, Net Sales, and Gross Profit for LBS.
2. Compute the gross profit percentage (using the formula shown in this chapter).
3. Prepare journal entries to record transactions ( a )-( e ).
4. LBS is considering a contract to sell building supplies to a local home builder for $20,000. These materials will cost LBS $16,000. Would this contract increase (or decrease) LBS's gross profit and gross profit percentage How should LBS decide whether to accept the contract
Larry's Building Supplies (LBS) is a locally owned and operated hardware store. LBS uses a perpetual inventory system.
The following transactions (summarized) have been selected from 2013:
Required:
1. Compute Sales Revenue, Net Sales, and Gross Profit for LBS.
2. Compute the gross profit percentage (using the formula shown in this chapter).
3. Prepare journal entries to record transactions ( a )-( e ).
4. LBS is considering a contract to sell building supplies to a local home builder for $20,000. These materials will cost LBS $16,000. Would this contract increase (or decrease) LBS's gross profit and gross profit percentage How should LBS decide whether to accept the contract
Explanation
Verified
Verified
1.
Income statement
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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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