Accounting Homework Help

Posted on 2013-11-22 16:44:00 in Accounting by JARED

I am stuck on a homework assignment for Accounting, probably very simple. I am not looking for a free ride I simply want assistance in calculating the answer.





Smith Ltd., a sports equipment wholesaler, sold $390,000 of merchandise to customers during November. The cost of the merchandise shipped was $270,000. All of the merchandise was shipped FOB destination. At November 30, $43,000 of the merchandise was in transit. The cost of the merchandise in transit was $15,000. During November, Smith purchased $82,000 of merchandise inventory and made cash payments for merchandise inventory of $134,000. How much revenue should the company recognize for the month of November? What is the gross profit recognized in November?



I got the revenue but am stuck on the gross profit part. Thanks for the help.

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