Tariq Fisher Company uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of Rs 450,000. Tariq engaged in the following transactions during the year:Prepare all necessary transaction as General Entries and answer given below option.Purchased merchandise inventory for Rs 500,000.Generated net sales of Rs 600,000.Recorded inventory shrinkage of Rs 10,000 after taking a physical inventory at year-end.Reported gross profit for the year of Rs 180,000 in its income statement.At what amount was Cost of Goods Sold reported in the company’s year-end income statement?At what amount was Merchandise Inventory reported in the company’s year-end balance sheet?Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account?d- Calculate the Gross profit margin ratio

The general entries for the transactions,calculation of amount of Cost of Goods Sold, merchandise…

Answered: At what amount was Cost of Goods Sold…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...

See similar textbooks

Related questions

Question

Tariq Fisher Company uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of Rs 450,000. Tariq engaged in the following transactions during the year:Prepare all necessary transaction as General Entries and answer given below option.

Purchased merchandise inventory for Rs 500,000.
Generated net sales of Rs 600,000.
Recorded inventory shrinkage of Rs 10,000 after taking a physical inventory at year-end.
Reported gross profit for the year of Rs 180,000 in its income statement.
At what amount was Cost of Goods Sold reported in the company’s year-end income statement?
At what amount was Merchandise Inventory reported in the company’s year-end balance sheet?
Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account?

d- Calculate the Gross profit margin ratio

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions