Cost of Goods Sold Section, Multiple-Step Income StatementBased on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.Merchandise Inventory, January 1, 20--$31,000Estimated Returns Inventory, January 1, 20--2,000Purchases102,000Purchases Returns and Allowances4,200Purchases Discounts2,040Freight-In800Merchandise Inventory, December 31, 20--25,500Estimated Returns Inventory, December 31, 20--1,500 Income StatementFor Year Ended December 31, 20--Cost of goods sold:$$Cost of goods sold2$

Income statement: When all the costs and expenses are subtracted one by one from the sale, then if…

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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 44E: Appendix 2 Cost of goods sold Identify the errors in the following schedule of the cost of goods...

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Cost of Goods Sold Section, Multiple-Step Income Statement

Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.

Merchandise Inventory, January 1, 20--	$31,000
Estimated Returns Inventory, January 1, 20--	2,000
Purchases	102,000
Purchases Returns and Allowances	4,200
Purchases Discounts	2,040
Freight-In	800
Merchandise Inventory, December 31, 20--	25,500
Estimated Returns Inventory, December 31, 20--	1,500

Income Statement
For Year Ended December 31, 20--
Cost of goods sold:
$
$
Cost of goods sold
2$

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