1. BaCo opens its business in 20X2 and purchases merchandise on account for $88,000. In 20X2, BaCo pays $67,000 cash on the $88,000 due, sales are $145,000, and ending inventory is $24,000. BaCo's gross profit for 20X2 is
a. $102,000 b. $81,000 c. $78,000 d. $57,000
2. GeCo begins 20X4 with merchandise costing $69,000. 20X4 sales are $233,000, purchases are $198,000, and ending inventory is $81,000. GeCo's 20X4 cost of goods sold is ...
a. $245,000 b. $221,000 c: $210,000 d. $186,000
3. On December 3, HuCo purchases merchandise for $47,000 on account, F.O.B. destination. Freight charges are $800. On December 26, HuCo pays the vendor $14,000. On HuCo's December 31 balance sheet the accounts payable balance will be
a. $33,800 b. $47,000 c. $47,800 d.$33,000
4. RiCo uses the prepetual method for inventory and records purchases at gross. In 20X4, it has total merchandise purchases of $324,000. It returns $19,000 of the merchandise for full credit and receives $7,000 in allowances from its vendors for defective merchandise and takes cash discounts of $1,000. The net cost of RiCo's 20X4 merchandise purchases is ...
a. $297,000 b. $305,000 c. $324,000 d. $298,000
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