Question

on november 10 of the current year, flores mills sold carpet to a customer for $8,100 with credit terms 210/ , n30/ . flores uses the gross method of accounting for sales discounts. what is the correct entry for flores on november 17, assuming the correct payment was received on that date?

Answer 1

The firm's accounting profit can be calculated by subtracting the total costs from the sales revenue. In this case, the firm's accounting profit would be $50,000.

Step-by-step explanation:

The firm's accounting profit can be calculated by subtracting the total costs from the sales revenue. In this case, the firm's accounting profit would be:

Accounting Profit = Sales Revenue - Total Costs

Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000)

Accounting Profit = $1,000,000 - $950,000

Accounting Profit = $50,000