Given Gross Sales of $50,000, Sales Returns and Allowances of $6,000

question 4

Short Answer

Given gross sales of $50,000, sales returns and allowances of $6,000, beginning inventory of $4,000, net purchases of $8,000, ending inventory of $2,000, and operating expenses of $4,500, calculate net income.

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for minor expenses.

Cash Over and Short

An account that records the discrepancies between the actual cash received and the expected amount.

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check.

Petty Cash

A small amount of cash kept on hand used for paying small expenses without writing a check or using a credit card.