cost of goods sold: Periodic system (Appendix) LO 4-9 Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balance were drawn from Tippah's records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000, sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold. b. Prepare a multisten income statement
cost of goods sold: Periodic system (Appendix) LO 4-9 Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balance were drawn from Tippah's records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000, sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold. b. Prepare a multisten income statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 4-21A (Static) Determining cost of goods sold: Periodic system (Appendix) LO 4-9
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances
were drawn from Tippah's records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and
allowances, $12,000; sales, $520,000, sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A
physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period.
Required
a. Prepare a schedule of cost of goods sold.
b. Prepare a multistep income statement.
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