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I understand the formulas I'm just not sure how to format this. Could someone please format it and then I can prepare the income statement?

Problem 5-7A

At the end of Oates Department Store’s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance.

Freight-In $ 6,072

Inventory (beginning) 49,560

Purchases 735,600

Purchase Discounts 8,400

Purchase Returns and Allowances 8,112

Sales Revenue 1,082,400

Sales Returns and Allowances 24,000

Additional facts:

1. Inventory on November 30, 2017, is $43,440.

2. Note that Oates Department Store uses a periodic system.

Prepare an income statement through gross profit for the year ended November 30, 2017.

I understand the formulas I'm just not sure how to format this. Could someone format it and then I can prepare the income statement?

2 Answers

Relevance
  • 2 months ago

    Sales Revenue 1,082,400

    Sales Returns and Allowances -24,000

    Net sales

    Inventory (beginning) 49,560

    Purchases 735,600

    Freight-In $ 6,072

    Purchase Discounts -8,400

    Purchase Returns and Allowances -8,112

    Inventory (ending) -43,440

    Cost of goods sold

    Gross profit

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  • Don G
    Lv 7
    2 months ago

    Just review your text on preparing an Income Statement, including the composition of Cost of Goods Sold. If you understand the formulas, what's holding you up?

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