Question

PART B: COMPREHENSIVE QUESTIONS SHOW 7. Durable Equipment Company uses the periodic inventory system. Durable reported the following selected amounts at lune 30, 2019 (the beginning inventory balance is also provides (25 Points) Merchandise Inventory, July 1, 2018 Merchandise Inventory, June 30, 2019 Purchases Purchase Discounts Purchase Returns and Allowances Freight In Net Sales Revenue Delivery Expense Sales Salaries Expense Common Stock Retained Earnings AED 22,000 19,000 96,000 5,000 8,500 3,200 212.400 1,400 44,200 45,000 24,500 T Compute the following: (20 Pts) Beginning Merchandise Inventory Purchases Less: Purchase Returns and Allowances Purchase Discounts Net Purchases Plus: Freight In Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Inventory Cost of Goods Sold (5 Pts) Net Sales Revenue (2 pts) Less: Cost of Goods Sold (1 pt) Gross Profit Gross Profit Margin to one decimal AED AED AED

Answer 1

Solution As per Below Image:

Amount In AED Amount In AED 220001 Requirement 1: Particulars A) Beginning Merchandise Inventory Purchases Less: Purchase Returns and Allowances Purchase Discounts Net Purchases Plus: Freight In B) Net Cost of Purchases C) Cost of Goods Available for Sale A+B) Less: Ending Inventory Cost of Goods Sold 96000 8500 5000 82500 3200 85700 107700 19000 88700 Requirement 2: Particulars Net Sales Revenue Less: Cost of Goods Sold Gross Profit Gross Profit Margin Amount In AED 212400 88700 123700 58.2%