Park Tires had sales of $412,980; Sales discounts totaled $2,120; and sales returns /allowances of $975.

The company made purchases of $230,345; received discounts of $2,345; returned $780 in merchandise. He also paid $1,890 in transportation costs, FOB shipping point. John's beginning inventory was $324,094; and his ending inventory amounted to $310,258.

Calculate and state each of the following:

Net sales...........................................................................................

Cost of Goods Available for Sale......................................................

Cost of Goods Sold............................................................................

Gross profit .......................................................................................

Solutions

Expert Solution

Net Sales =4,09,885

Cost of Goods Available for Sale=The cost of goods available for sale equals the beginning value of inventory plus the cost of goods purchased.

324094+227220=551314

Cost of Goods Sold..= The cost of goods soldequals the cost of goods available for sale less the ending value of inventory.

324094+227220-310258=241056

Gross profit .=409885+310258-324094-227220-1890=166939

ekkarill92 answered 2 years ago

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