Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 9

Income statement and accounts for merchandiser
For the fiscal year, sales were $25,565,000 and the cost of merchandise sold was $15,400,000
a. What was the amount of gross profit
b. If total operating expenses were $4,550,000, could you determine net income
c. Is Customer Refunds Payable an asset, liability, or owner's equity account and what is its normal balance
d. Is Estimated Returns Inventory an asset, liability, or owner's equity account and what is its normal balance