Question

need the answers for this

At the beginning of June, Circuit Country has a balance in inventory of $2.350. The following transactions occur during the month of June. June 2Purchase radios on account from Radio World for $2.050, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $270. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Seil radios to customers on account, 8), 100, that had a cost of $2,550. June 18 Receive payment on account from customers, $2.700. June 20 Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, 1/30. June 23 Sell radios to customers for cash, 6.650, that had a cost of $2.950. June 26 Returs damaged radios to sound isted and receive credit of $500. June 28 Pay Sound United in full. Problem 6-3B Part 2 2. Prepare the top section of the multiple-step income statement through gross profit for the month of June Answer is complete but not entirely correct. CIRCUIT COUNTRY Multiple-step Income Statement partial For the month of June Net Sales 8.350 Cost of Good Sold 5,500 Sales Discounts 1,000 Gross Profit 12.850

Answer 1

Answer:

Circuit Country
Multiple-step income statement
For the Month of June
Particulars	Amount in $
Sales	8,350.00
- Sales Discount	1,000.00
Net Sales	7,350.00
Cost of Goods Sold	5,500.00
Gross Profit	1,850.00

Explanation:

1. Net sales will come after the deduction of Sales Returns/Sales discounts from sales.

2. Cost of Goods sold is an expense and will be deducted from Net sales to derive gross profit.

Hence the final gross profit figure should be $ 1,850.