Question

eBook Show Me How Calculator Cost of Goods Sold Section, Multiple-Step Income Statement Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement. Merchandise Inventory, January 1, 20-- $37,000 Estimated Returns Inventory, January 1, 20-- 2,000 Purchases 102,000 Purchases Returns and Allowances 4,200 Purchases Discounts 2,040 Freight-In 800 Merchandise Inventory, December 31, 20-- Estimated Returns Inventory, December 31, 20- 30,500 2,500 Income Statement For Year Ended December 31, 20-- Cost of goods sold: DO Check My Work more Check My Works remaining Emaintructor Save and % & 2 3 9 4 5 6 7 8 0 W E R T Y 0 U

Answer 1

                                        Income statement

                                                   For the year ended December 31,20

		$	$	$
Cost of goods sold:
Merchandise Inventory,January 1		37,000
Less: Expected returns Inventory,January 1		2,000	35,000
Purchases		102,000
Purchase return and allowances	4,200
Purchase Discounts	2,040	(6,240)
Net Purchases		95,760
Freight In		800	96,560
Total Goods Available			131,560
Merchandise Inventory,December 31		30,500
Less: Expected returns Inventory,December 31		2,500	( 28,000)
Cost of goods sold				$103,560