Cost of Merchandise Sold and Related Items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory $ 10,900 Merchandise inventory, May 1, 2018 435,600 Merchandise inventory, April 30, 2019 544,500 Purchases 3,539,000 Purchases returns and allowances 108,900 Purchases discounts 65,300 Sales 5,444,600 Freight in 16,300 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. Harkins Company Income Statement For the Year Ended April 30, 2019 Cost of merchandise sold: Merchandise inventory, May 1, 2018 y Cost of merchandise purchased: Purchases Less: Purchases returns and allowances v Less: Purchases discounts v Net purchases Add freight in / Total cost of merchandise purchased Merchandise available for sale v Less merchandise inventory, April 30, 2019 Cost of merchandise sold before estimated returns v Increase in estimated returns inventory v Cost of merchandise sold
Cost of Merchandise Sold and Related Items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory $ 10,900 Merchandise inventory, May 1, 2018 435,600 Merchandise inventory, April 30, 2019 544,500 Purchases 3,539,000 Purchases returns and allowances 108,900 Purchases discounts 65,300 Sales 5,444,600 Freight in 16,300 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. Harkins Company Income Statement For the Year Ended April 30, 2019 Cost of merchandise sold: Merchandise inventory, May 1, 2018 y Cost of merchandise purchased: Purchases Less: Purchases returns and allowances v Less: Purchases discounts v Net purchases Add freight in / Total cost of merchandise purchased Merchandise available for sale v Less merchandise inventory, April 30, 2019 Cost of merchandise sold before estimated returns v Increase in estimated returns inventory v Cost of merchandise sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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