Problem
elected accounts from the accounting records of Northern Windows had the balances shown below at December 31 , 023. Northern Windows uses the periodic inventory system. i. (Click the icon to view the accounts.) equired Show the computation of Northern Windows' net sales, cost of goods sold, and gross margin for the year ended December 31, 2023. 2. Sal Namrata, the proprietor of Northern Windows, strives to earn a gross margin percentage of 25 percent. Did he achieve this goal? 3. Did the rate of inventory turnover reach the industry average of 3.8 times per year? Begin by determining net sales, and then continue with the calculation through to cost of goods sold and finally gross margin. Purchases Selling Expenses Fumiture and Fitures Purchase Returns and Allowances Salaries Payable Sales Revenue Sales Returns and Allowances Inventory: December 31.2022 Inventory. Desember 31, 2023 Acoounts Pavable Accounts Receivable Cash Freightin Aocumulated Amortization.-Furniture and Fixtures Paronase Discounts Salas Discounts Ganarai Expenses Amorazatión t xoenso fumitaro and Feuros S. Namrata, Capita S. Namirata. Vidarawals 180.000 10.000 40,000 1.000 1.500 205.000 1,900 36.000 37.000 9.000 15.000 3.500 1.400 16.000 4.500 1.600 22.000 4.000 81.500 20.500
Solution
Step 1 ：Calculate net sales by subtracting sales returns and allowances from sales revenue: \(205000 - 1900 = 203100\)
Step 2 ：Calculate cost of goods sold (COGS) by starting with the beginning inventory, adding purchases and freight-in, subtracting purchase returns and allowances and purchase discounts, and then subtracting the ending inventory: \((36000 + 180000 + 3500 - 1000 - 1400) - 37000 = 180100\)
Step 3 ：Calculate gross margin by subtracting COGS from net sales: \(203100 - 180100 = 23000\)
Step 4 ：Final Answer: The net sales for Northern Windows for the year ended December 31, 2023 is \(\boxed{203100}\). The cost of goods sold is \(\boxed{180100}\). The gross margin is \(\boxed{23000}\)
