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Brookside Equipment Company Uses the Periodic Inventory System Requirement A: Compute Net Sales Revenue

Question 202

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Brookside Equipment Company uses the periodic inventory system.Brookside reported the following selected amounts at June 30,2017:
 Merchandise Inventory, July 1,2016 $22,000 Merchandise Inventory, June 30, 2017 19,000 Purchases 96,000 Purchase Discounts 5,000 Purchase Returns and Allowances 8,500 Freight In 3,200 Sales Revenue 234,000 Sales Discounts 7,400 Sales Returns and Allowances 14,200 Common Stock 45,000 Retained Earnings 24.50\begin{array} { | l | r | } \hline \text { Merchandise Inventory, July 1,2016 } & \$ 22,000 \\\hline \text { Merchandise Inventory, June 30, 2017 } & 19,000 \\\hline \text { Purchases } & 96,000 \\\hline \text { Purchase Discounts } & 5,000 \\\hline \text { Purchase Returns and Allowances } & 8,500 \\\hline \text { Freight In } & 3,200 \\\hline \text { Sales Revenue } & 234,000 \\\hline \text { Sales Discounts } & 7,400 \\\hline \text { Sales Returns and Allowances } & 14,200 \\\hline \text { Common Stock } & 45,000 \\\hline \text { Retained Earnings } & 24.50 \\\hline\end{array} Requirement A: Compute net sales revenue.
Requirement B: Compute cost of goods sold.
Requirement C: Compute gross profit.

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Requirement A
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