This is about accounting in merchandising business. Thanks!1. How much is the cost of goods sold?2. How much is the gross profit?3. How much is the net income? Emily in Pares, a French-Filipino fusion restaurantowned by Émilie Joy Marie Batumbakal, has thefollowing information at yearend:Merchandise inventory, beginningPurchasesPurchase returns and allowancesPurchase discountsFreight-inMerchandise inventory, endingP25,000150,0008,00010,00012,00030,000Sales550,000Sales returns and allowances5,000Sales discount20,000Salaries expenseAdvertising expenseDepreciation expenseRental expenseSupplies expense15,00023,0006,00018,00014,000

Gross profit = Net sales - Cost of goods sold where, Net Sales = Sales - Sales return and allowances…

Emily in Pares, a French-Filipino fusion restaurant owned by Émilie Joy Marie Batumbakal, has the following information at yearend: Merchandise inventory, beginning P25,000 150,000 8,000 Purchases Purchase returns and allowances Purchase discounts Freight-in Merchandise inventory, ending Sales Sales returns and allowances Sales discount Salaries expense Advertising expense Depreciation expense Rental expense Supplies expense 10,000 12,000 30,000 550,000 5,000 20,000 15,000 23,000 6,000 18,000 14,000

Emily in Pares, a French-Filipino fusion restaurant owned by Émilie Joy Marie Batumbakal, has the following information at yearend: Merchandise inventory, beginning P25,000 150,000 8,000 Purchases Purchase returns and allowances Purchase discounts Freight-in Merchandise inventory, ending Sales Sales returns and allowances Sales discount Salaries expense Advertising expense Depreciation expense Rental expense Supplies expense 10,000 12,000 30,000 550,000 5,000 20,000 15,000 23,000 6,000 18,000 14,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 7RE: Uncle Butchs Hunting Supply Shop reports the following information related to inventory: Calculate...

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