Hull Company reported the following income statement information for the current year: Sales$412,000? Cost of goods sold: Beginning inventory$135,000? Cost of goods purchased 275,000? Cost of goods available for sale 410,000? Ending inventory 146,000? Cost of goods sold 264,000? Gross profit$148,000? The beginning inventory balance is correct. However, the ending inventory figure was overstated by $22,000. Given this information, the correct gross profit would be:
A. $148,000.
B. $170,000.
C. $113,000.
D. $126,000.
E. $139,000.
Answer: D
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A liquidation differs from a dissolution in that in a liquidation
A) the business will not continue. B) assets may be revalued. C) gains are distributed according to the partnership agreement. D) there may be an adjustment of partners' Capital accounts.
When the direct write-off method of recognizing bad debt expense is used, the entry to write off a specific customer account would
a. increase net income. b. have no effect on net income. c. increase the accounts receivable balance and increase net income. d. decrease the accounts receivable balance and decrease net income.
Once an organization has developed its distribution objectives, it should next ________
A) identify the channel leader B) determine a distribution budget C) select the optimum number of channel levels D) define the target market and articulate the market segmentation strategy E) evaluate the internal and external environments