Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account...

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Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles an

b. Prepare a multistep income statement. TIPPAH ANTIQUES Income Statement For the Year Ended December 31, Year 2 0 0

business accounting

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Answer 1

Answer #1

TIPPAH ANTIQUES
Schedule of Cost of Goods Sold
For the Year Ended December 31, Year 2
Beginning Merchandise Inventory	$ 25,100
Add: Purchases	307,000
Add: Freight-in	1,870
Less: Purchase Returns and Allowances	(13,200)
Cost of Goods Available for Sale	320,770
Less: Ending Merchandise Inventory	(25,000)
Cost of Goods Sold	$ 295,770

TIPPAH ANTIQUES
Income Statement
For the Year Ended December 31, Year 2
Sales	$ 727,000
Less: Sales Returns and Allowances	(6,320)
Net Sales	720,680
Less: Cost of Goods Sold	(295,770)
Net Profit	$ 424,910

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