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Q9. The income statement of Jeter Company includes the items listed below:                         Sales     &nbsp

Q9. The income statement of Jeter Company includes the items listed below:

                        Sales                                                             $915,000

                        Gross profit                                                    320,000

                        Beginning inventory                                         80,000

                        Sales discounts                                                 10,000

                        Purchase discounts                                           15,000

                        Sales returns and allowances                              5,000

                        Purchase returns and allowances                        8,000

                        Freight-in                                                         10,000

                        Operating expenses                                        300,000

                        Purchases                                                       540,000

Compute the ending inventory.

$25,000

$27,000

$29,000

$30,000

10. The Marie Daughters, Inc. started and ended the year with unearned revenue account balances of $500,000 and $415,000. Marie Daughters collects all payments in advance of service. The company earned $2,100,000 of revenue from customers. How much cash did the company collect as advances from customers during the year?

$2,000,000

$2,015,000

$1,985,000

$2,515,000

Business   Accounting   
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Answer #1
Beginning Inventory 80000
Sales returns and allowances 5000
Freight in 10000
Purchases (540000-15000) 525000
Gross Profit 320000
Less: Sales (915000-10000) 905000
Less: Purchase returns and allowances 8000
Ending Inventory (80000+5000+10000+525000+320000-905000-8000) 27000
Thereofore, the right answer is option (b) $ 27000
Closing Balance of Unearned revenue 415000
Add: Revenue Earned 2100000
Less: Opening Balance of Unearned revenue 500000
Cash collect as advances from customers (415000+2100000-500000) 2015000
Therefore, the right answer is option (b) $ 2,015,000
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