Question

* Question 4 Blossom Stores uses a periodic inventory system and reports the following information for 2017: $40,000 Beginning inventory Ending inventory Freight in Net sales Purchase discounts Purchase returns and allowances Purchases $525,000 6,000 9,000 330,000 12,000 10,000 Freight out Prepare the cost of goods sold section of the multiple-step income statement for Blossom Stores. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) BLOSSOM STORES Income Statement

Answer 1

Solution:

9 AR 12 14 15 40000 Blossom Stores Income statement Cost of goods sold: Beginning Inventory Purchases Less: Purchase discounts 6000 Purchases returns and allowances 9000 16 330000 17 18 19 20 21 15000 315000 12000 22 23 Net Purchases Add: Freight In Total cost of goods purchased Cost of goods available for sale Ending Inventory Cost of goods sold 24 25 327000 367000 -65000 302000 34 35 40 41 43 et149 ) Sheet146 ) Sheet148 ) Sheet150 Sheet262