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The following amounts are known: Beginning merchandise inventory $28,000 Ending merchandise inventory 27,000 Purchases 61,000 Purchases returns and allowances 2,800 Purchases discounts 3,100 Freight-in 300   Assume the business makes estimates for sales returns and allowances at year end. The balances for estimated returns inventory are provided below. Beginning estimated returns inventory $2,500 Ending estimated returns inventory 3,800   Required:   Prepare the cost of goods sold section of the income statement for Havens Gift Shop

The following amounts are known: Beginning merchandise inventory $28,000 Ending merchandise inventory 27,000 Purchases 61,000 Purchases returns and allowances 2,800 Purchases discounts 3,100 Freight-in 300   Assume the business makes estimates for sales returns and allowances at year end. The balances for estimated returns inventory are provided below. Beginning estimated returns inventory $2,500 Ending estimated returns inventory 3,800   Required:   Prepare the cost of goods sold section of the income statement for Havens Gift Shop

FINANCIAL ACCOUNTING
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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The following amounts are known:
Beginning merchandise inventory $28,000
Ending merchandise inventory 27,000
Purchases 61,000
Purchases returns and allowances 2,800
Purchases discounts 3,100
Freight-in 300
 
Assume the business makes estimates for sales returns and allowances at year end. The balances for estimated returns inventory are provided below.
Beginning estimated returns inventory $2,500
Ending estimated returns inventory 3,800
 
Required:
  Prepare the cost of goods sold section of the income statement for Havens Gift Shop.
 
 
 
 
X
Income Statement
 
 
Prepare the cost of goods sold section of the income statement.
Income Statement Instructions
 
Havens Gift Shop.
Income Statement (Partial)
For the year ended December 31, 20--
1
Cost of goods sold:
 
 
 
 
2
 
 
 
 
 
3
 
 
 
 
 
4
  
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