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5 March, 01:24

transtutors Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting

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  1. 5 March, 03:16
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    Gross profit from the month of December is $238000

    Explanation:

    Question is incomplete but the missing part is:

    Cash received from customer during december 2017 - 387,000

    Cash paid to supplier for inventory during december 2017 - 131,000

    Accrual basis revenues

    Particulars Amount $

    Cash received from customer 387000

    during December 2017

    Cash received in December for - 139000

    November accounts receivable

    December sales made on account 141000

    collected in January

    Accrual basis revenues 389000

    Accrual basis expenses

    Particulars Amount $

    Cash paid to suppliers for inventory 131000

    during December 2017

    Payments for inventory purchased - 19000

    and used in November

    Inventory purchased in November 39000

    but not used in December

    Accrual basis expenses 151000

    Gross profit from the month of December = Accrual basis revenues - Accrual basis expenses

    Gross profit = 389000 - 151000

    Gross profit = $238000
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