# Instructions:  Fill in the amounts that are missing.                                                     2013                  2014              2015Sales                                           217,500             ?                       307,500Sales Returns                               8,250                  9,750               ? Net Sales                                    ?                      260,250               ?Beginning Inventory                15,000                    24,000            ?Ending Inventory                           ?                        ?                   ?Purchases                                       ?                   195,000         223,500Purchase Returns & Allowances    3,750                6,000             7,500Transportation - in                      6,000                6,750              9,000    Cost of Goods Sold                   174,750              ?                     219,750Gross Profit                                  34,500             68,250               72,750

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Instructions:  Fill in the amounts that are missing.

2013                  2014              2015

Sales                                           217,500             ?                       307,500

Sales Returns                               8,250                  9,750               ?

Net Sales                                    ?                      260,250               ?

Beginning Inventory                15,000                    24,000            ?

Ending Inventory                           ?                        ?                   ?

Purchases                                       ?                   195,000         223,500

Purchase Returns & Allowances    3,750                6,000             7,500

Transportation - in                      6,000                6,750              9,000

Cost of Goods Sold                   174,750              ?                     219,750

Gross Profit                                  34,500             68,250               72,750

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Step 1

On the basis of given question, we need to find out the missing numbres.

Below formulas are used -

1. Gross sales= Net sales + Sales return = 260250+ 9750 = 270000

2. Cost of goods sold = Net sales - Gross profit= 260250- 68250= 192000

3. Ending inventory = Opening inventory + net purchases + transport - Cost of goods sold

 Ending inventory Opening stock 24000 Net purchase 189000 Transport 6750 Total 219750 Less COGS -192000 Ending inventory= 27750

where net purchases is purchases - purchase return made= 195000- 6000= 189000

Attached are the miising numbers in yellow for year 2014.

Step 2

We shall now calculate the 2015 year numbers-

below are the calculations-

Please note the closing inventory for year 2014 will be the opening inventory of year 2015 as per the accounting principles. therefore, opening inventory will 27750 ( the closing balance carried forward of the year 2014)

1. Net sales = Cost of goods sold + Gross profit= 219750+ 72750= 292500

2. Salesreturn = Sales - net sales = 307500- 292500= 15000

3. Ending inventory = Opening inventory + net purchases+ transport- Cost of goods sold,

 Ending inventory Opening stock 27750 Net purchase 216000 Transport 9000 Total 252750 Less COGS -219750 Ending inventory= 33000

where net purchase = 223500 purchases less- 7500  purchase retrun= 216000

Using the above calculations, attached the are missing numbers for year 2015 in yellow-

Step 3

Now we shall calculate the 2013 numbers as follows;

1. Please note the openinh inventory of 2014 was the closing inventory for year 2013, hence it will 24000.

2. Net sales = Sales - Sales return= 217500- 8250= 209250

3. Purchases = Ending inventory + cost of goods sold  - opening inventory- transport charges

 Opening inventory Ending inventory 24000 COGS 174750 Less opening i...

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