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Accounting

Problem:

Bridget Krumb, Inc., purchased inventory costing $125,000 and sold 80% of the goods for $190,000. All purchases and sales were on account. Krumb later collected 25% of the accounts receivable.

Required:

Question 1: Journalize these transactions for Krumb, which uses the perpetual inventory system.

Question 2: For these transactions, show what Krumb will report for inventory, revenues, and expenses on its financial statements. Report gross profit on the appropriate statement.

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91163728

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