Periodic Inventory System: Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. Gross Profit Percentage: Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula: Gross profit percentage= Gross profit Net sales × 100 The balances in the sales revenue of Company C, at April 10, 2015.

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Answer 1

Question

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

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Answer 2

Question

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Answer 6

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

Answer 7

Chapter 6, Problem 6.5BYP

(a)(1)

To determine

Periodic Inventory System:

Periodic inventory system is a system, in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Gross Profit Percentage:

Gross profit percentage is the financial ratio that shows the relationship between the gross profit and net sales. It represents gross profit as a percentage of net sales. Gross Profit is the difference between the net sales revenue, and the cost of goods sold. It can be calculated by using the following formula:

$Gross profit percentage= Gross profitNet sales×100$

The balances in the sales revenue of Company C, at April 10, 2015.

Answer 8

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

Answer 9

(2)

To determine

The balances in the purchases of Company C, at April 10, 2015.

Answer 10

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

Answer 11

(b)

To determine

The average gross profit rate for the years 2013, and 2014.

Answer 12

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Answer 13

(c)

To determine

The inventory loss as a result of the fire, using the gross profit method.

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

Ch. 6 - Prob. 1Q Ch. 6 - 2. An item must possess two characteristics to be...Ch. 6 - Prob. 3Q Ch. 6 - 4. (a) Rochelle Company ships merchandise to Jay...Ch. 6 - 5. Katz Hat Shop received a shipment of hats for...Ch. 6 - 6. Explain the difference between the terms FOB...Ch. 6 - 7. Kyle Ebert believes that the allocation of cost...Ch. 6 - 8. What is the major advantage and major...Ch. 6 - 9. “The selection of an inventory cost flow method...Ch. 6 - 10. Winch assumed inventory cost flow...

Concept explainers

The balances in the purchases of Company C, at April 10, 2015.

The average gross profit rate for the years 2013, and 2014.

The inventory loss as a result of the fire, using the gross profit method.

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Chapter 6 Solutions