Accounting > CASE STUDY > ACC 290 Week 3 Preparing a Multiple Step Income Statement Problem 5-5A (Simon Company) | Answered. (All)

ACC 290 Week 3 Preparing a Multiple Step Income Statement Problem 5-5A (Simon Company) | Answered.

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ACC 290 Week 3 Preparing a Multiple Step Income Statement Write-Up. ACC 290 Week 3: The net sales of Simon Company entered by the inexperienced accountant is $850,000. However, that is inaccurate as ... in order to calculate the net sales, you deduct the Less: Sales returns and allowances of $28,000 and also the Sales Discounts of $18,000 from the sales of $911,000. That calculation actually gives you a net sales of $865,000. Due to the person making a mistake in the net sales, the gross profit is also off. In order to get the gross profit, you deduct the Costs of Goods Sold ($555,000) from the net sales of $865,000. That gives you a correct gross profit of $310,000………. [Show More]

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