Chapter 6, Problem 9PA

On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows:

Instructions

1. 1. Does Wyman Company use a periodic or perpetual inventory system? Explain.
2. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000.
3. 3. Prepare the closing entries for Wyman Company as of December 31, 2019.
4. 4. What would the net income have been if the perpetual inventory system had been used?