Ross & Company is a wholesaler of hair supplies. Ross uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $29,877). $ 53,120 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $250). 280 c. Sold merchandise (costing $5,605) to a customer on account with terms n/60. 11,800 d. Collected half of the balance owed by the customer in (c). 5,900 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 166 f. Anticipate further returns of merchandise (costing $170) after year-end from sales made during the year. 290 Required: Compute Net Sales and Gross Profit for Ross.
Ross & Company is a wholesaler of hair supplies. Ross uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $29,877). $ 53,120 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $250). 280 c. Sold merchandise (costing $5,605) to a customer on account with terms n/60. 11,800 d. Collected half of the balance owed by the customer in (c). 5,900 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 166 f. Anticipate further returns of merchandise (costing $170) after year-end from sales made during the year. 290 Required: Compute Net Sales and Gross Profit for Ross.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ross & Company is a wholesaler of hair supplies. Ross uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
| a. Sold merchandise for cash (cost of merchandise $29,877). | $ 53,120 |
|---|---|
| b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $250). | 280 |
| c. Sold merchandise (costing $5,605) to a customer on account with terms n/60. | 11,800 |
| d. Collected half of the balance owed by the customer in (c). | 5,900 |
| e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. | 166 |
| f. Anticipate further returns of merchandise (costing $170) after year-end from sales made during the year. | 290 |
Required:
- Compute Net Sales and Gross Profit for Ross.
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