Question

I need to find a GROSS PROFIT for this question: Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2018: Estimated returns of current year sales $ 13,000 Inventory, May 1, 2017 $ 362,700 Inventory, April 30, 2018 453,400 Purchases 2,947,300 Purchases returns and allowances 90,700 Purchases discounts 54,400 Sales 4,534,300 Freight in 13,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2018, using the periodic inventory system. Harkins Company Income Statement For the Year Ended April 30, 2018 Inventory, May 1, 2017 $ Cost of merchandise purchased: Purchases $ Less: Purchases returns and allowances Less: Purchases discounts Add: Freight in Total cost of merchandise purchased Inventory available for sale $ Less: Inventory, April 30, 2018 Cost of goods sold before estimated returns $ Less: Estimated returns Cost of goods sold

The cost of goods information I already have, but the information that I need is to determine the GROSS PROFIT:

b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2018.

c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
No

Answer 1