The following data relate to Field run Industries for the year ending December 31, 2024: Item Amount Sales on credit $820,000 Cost of goods sold $570,000 Collections from customers $640,000 Purchases of inventory on credit $390,000 Payment for inventory purchases $280,000 Selling expenses (accrual basis) $70,000 Payment for selling expenses $64,000 Compute net income using accrual basis:

The following data relate to Field run Industries for the year ending December 31, 2024: Item Amount Sales on credit $820,000 Cost of goods sold $570,000 Collections from customers $640,000 Purchases of inventory on credit $390,000 Payment for inventory purchases $280,000 Selling expenses (accrual basis) $70,000 Payment for selling expenses $64,000 Compute net income using accrual basis:

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
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