Ask Me Help Desk - Accounting

Accounting

Hi everyone,

I new to this so I hope I do this right. There are some stuff I don't understand. So if you can help me out thank so much for your time.

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.)

Net sales revenue
Cost of goods sold
Gross profit

Ok I don't know how to add the Euros. If you can, Please explain it to me a little bit more. I just don't know how to start it so if you can help me thank you. Im confused?? :confused: I never done this before. I'm sorry to ask you to help but I stuck. Thank- you all for reading and trying to help me.
Thank-you,
IceGirl

So are you saying that

Quote:

Purchases………………... E250,000

Freight In……………… E8,000

Are the only one's in Euros and the rest are in American dollars?

If you are saying that, then you must convert the american dollar ones into Euros.

Does your textbook give you an exchange rate to use?

Sorry I should put they are all in euros sorry about that. No it dosen't show the exchange rate sorry. Thanks for helping.

That makes more sense.

So all figures are in Euros.

Answer is as follows:

Given Information:

Quote:

Sales…………………. 400,000
Sales discounts…………. 4,000
Sales returns…………. 8,000

Purchases………………... E250,000
Purchase discounts…. 3,000
Purchase returns…….. 7,000
Freight In……………… E8,000

Inventory
December 31, 20X1….. 20,000
December 31, 20X2….. 30,000

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

Net sales revenue
Cost of goods sold
Gross profit

Net Sales Revenue = Sales – Sales Discounts – Sales Returns = 400,000 – 4,000 – 8,000 = E388,000

Cost of Goods Sold = Beginning Inventory + Purchases – Purchase discounts – Purchase returns + Freight In – Ending Inventory

Cost of Goods Sold = 20,000 + 250,000 – 3,000 – 7,000 + 8,000 – 30,000 = E238,000

Gross Profit = Net Sales Revenue – Cost of Goods Sold = 388,000 – 238,000 = E150,000

Thank you. I almost had it right thanks for your help.

Thank-you so much,
IceGirl

You're welcome