Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.Merchandise Inventory, January 1, 20--$35,000Estimated Returns Inventory, January 1, 20--2,000Purchases106,000Purchases Returns and Allowances5,800Purchases Discounts3,230Freight-In700Merchandise Inventory, December 31, 20--29,500Estimated Returns Inventory, December 31, 20--1,500 Income StatementFor Year Ended December 31, 20--Cost of goods sold:Merchandise inventory, Jan. 1, 20--35,000Estimated returns inventory, Jan. 1, 20--Cost of goods sold

Cost of goods manufactured means the cost incurred for manufacturing the finished product. Cost of…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.

Merchandise Inventory, January 1, 20--	$35,000
Estimated Returns Inventory, January 1, 20--	2,000
Purchases	106,000
Purchases Returns and Allowances	5,800
Purchases Discounts	3,230
Freight-In	700
Merchandise Inventory, December 31, 20--	29,500
Estimated Returns Inventory, December 31, 20--	1,500

Income Statement
For Year Ended December 31, 20--
Cost of goods sold:
Merchandise inventory, Jan. 1, 20--
35,000
Estimated returns inventory, Jan. 1, 20--
Cost of goods sold

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