Question

transtutors Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting

Answer 1

Gross profit from the month of December is $238000

Step-by-step explanation:

Question is incomplete but the missing part is:

Cash received from customer during december 2017 - 387,000

Cash paid to supplier for inventory during december 2017 - 131,000

Accrual basis revenues

Particulars Amount $

Cash received from customer 387000

during December 2017

Cash received in December for -139000

November accounts receivable

December sales made on account 141000

collected in January

Accrual basis revenues 389000

Accrual basis expenses

Particulars Amount $

Cash paid to suppliers for inventory 131000

during December 2017

Payments for inventory purchased -19000

and used in November

Inventory purchased in November 39000

but not used in December

Accrual basis expenses 151000

Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses

Gross profit = 389000 - 151000

Gross profit = $238000