Question

t accounts recelvable at their net realizable value? 43) What does it mean to repor 44) For each company, calculate the missing amount. Sales Cost of Goods Gross ProfitOperating Net Income Expenses Sold $1,000 4,000 2,000 $3,000 $8,000 9,000 8,000 8,000 $4,000 Lennon 2,000 3,000 3,000 3,000 Harrison McCartney Starr 5,000 3,000 5,000 45) Beasley Inc., reports the following amounts in its December 31, 2018, income statement Sales Income tax revenue $300,000 expense Interest expense12,000 sold Salaries expense $38,000 Cost of goods 125,000 Advertising 24,000 35,000 expense Utilities expense 41,000 Prepare a multiple-step income statement.

Answer 1

Q43.
Accounts receivable to be shown at net realizable value means the Allowancce for uncollectible accounts shall be deucted from gross amount due.
That means the estimate of amount uncollectible which is shown in Allowance shall be deducted from AR, to know the realizable value.
Q44.
		Sales	COGS	Gross profit	Operating Expense	Net Income
Lenon		8000	4000	4000	3000	1000
Harrison		9000	3000	6000	2000	4000
Mc Cartney		8000	3000	5000	3000	2000
Starr		8000	3000	5000	3000	2000
Q45.
Income Statement:
Sales revennue			300000
Less: Cost of goods sold			125000
Gross Profit			175000
Less: Operating expenses
Salaries expense			35000
Utilities expense			41000
Advertising expenses			24000
Total Operating expenses			75000
Less: Interest expenses			12000
Before tax income			63000
Less: Income tax expense			38000
After tax Income			25000