Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570

Question

Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570 Unearned Revenue (40 units) $ 11,600 Accounts Payable (Jan Rent) $ (1,550) Notes Payable $ 4,050 Contributed Capital $5,000 $2,600 $16,500 $6,300 4,270 Retained Earnings-Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $150 per unit. . In January, WWC received a $5,000 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $4,050. . wwC's note payable accrues interest at a 12% annual rate. wwcwluse hOrmethd adn perpetual bais

Explanation / Answer

GROSS POFIT FOR FEBRUARY: Ref Sales Revenue for February: 5 Sales Revenue $21,000 7 Sales Revenue $5,000 10 Sales return and allowance ($2,250) 15 Sales discount ($140) A Total Sales Revenue $23,610 Cost of Goods sold for February: 6 Cost of goods sold $11,365 8 Cost of goods sold $3,080 9 Cost of goods sold ($1,155) B Total cost of goods sold $13,290 C=A-B Gross Profit for February $10,320 1 Gross Profit $10,320 2 Gross Profit Percentage 43.7% (10320/23610)*100% 3 Net Sales $23,610

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