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Suppose a store in Milan ended September with 1,500,000 units of merchandise that cost an average of €9.00 each. Suppose the store then sold 1,300,000 units for €14.1 million during October. Further, assume the store made two large purchases during October as follows:
Requirements
Question 1. At October 31, the store manager needs to know the store's gross profit under both FIFO and LIFO. Supply this information.
Question 2. What caused the FIFO and LIFO gross profit figures to differ?
Jenson Company began the year with retained earnings of $250,000. During the year, the company recorded revenues of $350,000, expenses of $275,000, and paid dividends of $30,000. What was Jenson’s retained earnings at the end of the year?
Which journal entry reflects the following transaction?:
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