Chapter 5, Problem P5.44BPGB

To determine

Periodic Inventory System:

Under periodic inventory system, the value of inventory is updated on periodic basis and not at each purchases or sales carried by a business. So whenever a customer returns the sold inventories, the accounts receivable is credited instead of inventory.

Multi-Step Income Statement:

A multi-step income statement is very similar to single step income statement except it segregates the revenues and expenses into different categories.

To determine:

1. Prepare Multi-Step Income Statement of Tilton Department Store.

2. Journalize the closing entries as on December 31, 2016.