Summarized below are the transactions recorded by Rummy Ltd. for calendar 2018, using a perpetual inventory system. Their Jan 1 opening balances were: accounts receivable $145,000, inventory $45,000, and accounts payable $122,000. (Record receipts from customers)InstructionsPrepare the 2018 income statement to the gross profit line only.
a. As it would appear using the perpetual inventory system.
b. As it would appear if a periodic inventory system had been used.
c. Calculate the gross profit margin for the year.

Question

Summarized below are the transactions recorded by Rummy Ltd. for calendar 2018, using a perpetual inventory system. Their Jan 1 opening balances were: accounts receivable $145,000, inventory $45,000, and accounts payable $122,000.  (Record receipts from customers)InstructionsPrepare the 2018 income statement to the gross profit line only. 
a. As it would appear using the perpetual inventory system.
b. As it would appear if a periodic inventory system had been used.
c. Calculate the gross profit margin for the year.

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The Answer of Summarized below are the transactions recorded by Rummy Ltd. for calendar 2018, using a perpetual inventory system. Their Jan 1 opening balances were: accounts receivable $145,000, inventory $45,000, and accounts payable $122,000.  (Record receipts from customers)InstructionsPrepare the 2018 income statement to the gross profit line only. 
a. As it would appear using the perpetual inventory system.
b. As it would appear if a periodic inventory system had been used.
c. Calculate the gross profit margin for the year.

Summarized Below Are the Transactions Recorded by Rummy Ltd