Share
Explore BrainMass

Accounting for Merchandising Organizations - Les Fleurs

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

Purchases..................... E250,000
Freight In.................. E8,000
Sales discounts............. 4,000
Purchase returns........ 7,000
Inventory Sales...................... 400,000
December 31, 20X1..... 20,000 Purchase discounts.... 3,000
December 31, 20X2..... 30,000 Sales returns............. 8,000

Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

1. Net sales revenue
2. Cost of goods sold
3. Gross profit

First and foremost when completing the assignment, DO NOT CONVERT THE EUROS TO US DOLLARS! Replace the word "Euros" in the problem with US $.

Remember, there are 3 parts (1) calculate net sales revenue; (2) Calculate cost of goods sold; and (3) Calculate gross profit.

Solution Preview

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

Purchases..................... E250,000
Freight In.................. E8,000
Sales discounts............. 4,000 Purchase returns........ 7,000
Inventory Sales...................... 400,000
December 31, 20X1..... 20,000 Purchase discounts.... 3,000
December 31, 20X2..... 30,000 Sales ...

Solution Summary

This solution is comprised of a detailed explanation to compute net sales revenue, cost of goods sold, and gross profit for Les Fleurs during 20X2.

$2.19