Question

The following information relates to Payleast Shoes Company. Assuming the company uses the periodic inventory system, solve for the missing amounts a through m for years 2020 through 2022. Do not use negative signs in your answers. Round gross profit percentage to the nearest whole percentage point.

2022 2021 $110.000 $130,000 $90,000 12000 70,000 6,000 82.500 5.000 2.500 Net Sales Beginning inventory Purchases gross) Purchase returns and allowances Purchase discounts Freight in Cost of goods available for sale Ending inventory Cost of sales Gross profit Gross profit percentage 99,000 8,800 1,900 10,000 4,000 3,000 93.500 A 15.000 E 26,000 75.500 39,700

Answer 1

A.$75,000

B.$60,000

C.$30,000

D.33%

E.$15,000

F.$3,500

G.$18,000

H.$34,500

I.31%

J.$18,000

K.$116,300

L.$90,300

M.31%

Step-by-step explanation:

Payleast Shoes Company

2020

1.Net sales = $90,000

2.

Beginning Inventory = $12,000

Add Purchase (Gross) = $70,000

Less Returns/Allowance = $6,000

Less Purchase discounts = $4,000

Add Freight-in = $3,000

Cost of goods available for sale = $75,000

Less End inventory = $15,000

Cost of Sales = $60,000

3. Gross profit = $30,000

4. Gross Profit % = 33%

2021

1.Net sales = $110,000

2.

Beginning Inventory = $15,000

Add Purchase (Gross) = $82,500

Less Returns/Allowance = $5,000

Less Purchase discounts = $2,500

Add Freight-in = $3,500

Cost of goods available for sale = $93,500

Less End inventory = $18,000

Cost of Sales = $75,500

3. Gross profit = $34,500

4. Gross Profit % = 31%

2022

1.Net sales = $130,000

2.

Beginning Inventory = $18,000

Add Purchase (Gross) = $99,000

Less Returns/Allowance = $8,800

Less Purchase discounts = $1,900

Add Freight-in = $10,000

Cost of goods available for sale = $116,300

Less End inventory = $26,000

Cost of Sales = $90,300

3. Gross profit = $39,700

4. Gross Profit % = 31%