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Here are the steps to solve MC 16 & 17 for the Dilly Company: 1) COGS for January = (Sales on account + Cash sales) / Markup = (1,500,000 + 250,000) / 1.25 = 1,400,000 2) Jan 1 inventory = Inventories at end of previous month x COGS = 30% x 1,400,000 = 420,000 MC 18: Sales on account gross of January = 1,500,000 Collections for January = Sales on account gross x 45% x 10% x 98% = 1,500,000 x 45% x 10% x 98%

Author

madlangbayanryz

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EN