Answer #2 only 1. The following are taken from the income statement of Joy Traders. Supply the missing figures.Show computations20172018Merchandise Inventory, Beginning(1)(3)Merchandise Inventory, End186,000(4)Purchases224,000(5)Purchase Returns and Allowances6,00026,000Purchase Discounts3,60012,000Freight-in10,00022,000Goods Available for Sale550,0001,174,000Cost of Sales(2)920,0002. Classify the following expenses if it is Selling and Distribution, Administrative, Finance expenseor Other expensesSelling and DistributionAdministrativeFinance expenseother expenses- Office salaries- Discount on sale- Interest expense- Rent Expense- Office Utilities- Fuel- Depreciation – Delivery Vehicle- Bad debts- Tax expense- Sales Salaries- Loss on sale of equipment

The student was asked to provide an Answer for 2nd question hence answer is given to 2nd question…

2. Classify the following expenses if it is Selling and Distribution, Administrative, Finance expense or Other expenses Selling and Distribution Administrative Finance expense | other expenses - Office salaries - Discount on sale - Interest expense - Rent Expense - Office Utilities - Fuel - Depreciation - Delivery Vehicle - Bad debts - Tax expense - Sales Salaries - Loss on sale of equipment