Question

Do you want to install the update eBook Show Me How Calculator Calculation of Cost of Goods Sold: Periodic Inventory System With Sales Returns And Allowances Instructions Amount Descriptions Income Statement Н Instructions The following amounts are known: $31.000 25,000 62,000 Beginning merchandise inventory Ending merchandise inventory Purchases Purchases returns and allowances Purchases discounts Freight-in 2,600 3,500 290 Assume the business makes estimates for sales returns and allowances at year end. The balances for estimated returns inventory are provided below. $2.400 Beginning estimated returns inventory Ending estimated returns inventory 3,500 Required: Prepare the cost of goods sold section of the income statement for Havens Git Shop Check My Work 5 more Check My Work uses remaining. Email Instructor Save and Exit Submit Assignment All work saved

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Answer 1

Havens Gift Shop Icome Statement (partial ) For the Year ended December 31
Cost of goods sold:
Merchandise inventory January 1			$ 31,000
Purchases		$ 62,000
Purchases returns and allowances	($ 2,600)
Purchase discounts	($ 3,500)	($ 6,100 )
Net purchases		$ 55,900
Frieght In		$ 290
Cost of goods purchased			$ 56,190
Cost of goods available for sale			$ 87,190
Less: Merchandise inventory December 31			($ 26,000 )
Cost of Goods sold				$ 61,190