Question

Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 2020 2021 Sales revenue $292,550 $410,470 Sales returns and allowances (10,040) (12,050) Net sales 345,778 Beginning inventory 20,230 32,760 Ending inventory Purchases 260,310 297,101 Purchase returns and allowances (4,960) (8,640) (10,920) Freight-in 7,970 8,460 11,900 Cost of goods sold (236,970) (295,504) Gross profit on sales 45,540 90,810 103,170

Answer 1

Particulars | 2019 Sales Revenue 2.92,550 Sales returns and Allowances -10,040 Net Sales 2,82,510 Beginning Inventory 20.230 Ending Inventory -32,760 Purchases 2,46,490 Purchase returns and Allowances 4,960 Freight-In 7,970 Cost of Goods Sold -2.36,970 Gross Profit on Sales 45,540 2020 3,57,828 -12,050 3.45.778 32.760 -37,922 2,60,310 -8.640 8.460 -2,54,968 90.810 Amount in $ 2021 4,10.470 -11,256 3,99,214 37,922 -40,499 2.97.101 -10.920 11.900 -2.95,504 1,03,710 2019 Values 1 Net Sales = Sales Revenue - Sales returns and Allowances Net Sales = 292550-10040 = 2,82,510 2 Ending Inventory of 2019 = Beginning Inventory of 2020 Ending Inventory of 2019 = 32,760 3 Cost of Goods Sold = Beginning Inventory - Ending Inventory + Purchases - Purchase returns and Allowances + Freight-In 236970 = 20230 - 32760 - Purchases - 4960 - 7970 236970 = Purchases - 9520 Purchases = 9520 - 236970 = 2,46,490

2020 Values 1 Net Sales = Sales Revenue - Sales returns and Allowances 345778 = Sales Revenue - 12050 Sales Revenue = 345778 + 12050 = 3,57,828 2 Net Sales - Cost of Goods Sold = Gross Profit on Sales 345778 - Cost of Goods Sold = 90810 Cost of Goods Sold = 345778 - 90810 = 2,54,968 3 Cost of Goods Sold = Beginning Inventory - Ending Inventory - Purchases - Purchase returns and Allowances + Freight-In 254968 = 32760 - Ending Inventory + 260310 - 8640 - 8460 254968 = 292890 - Ending Inventory Ending Inventory = 292890 - 254968 = 37.922 2021 Values 1 Ending Inventory of 2020 = Beginning Inventory of 2021 Beginning Inventory of 2021 = 37,922 2 Net Sales = Cost of Goods Sold - Gross Profit on Sales Net Sales = 295504 - 103710 Net Sales = 3,99,214 3 Net Sales = Sales Revenue - Sales returns and Allowances 399214 = 410470 - Sales returns and Allowances Sales returns and Allowances = 410470 - 399214 Sales returns and Allowances = 11,256 4 Cost of Goods Sold = Beginning Inventory - Ending Inventory + Purchases - Purchase returns and Allowances + Freight-In 295504 = 37922 - Ending Inventory - 297101 - 10920 - 11900 295504 = 336003 - Ending Inventory Ending Inventory = 336003 - 295504 Ending Inventory = 40,499