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College Accounting (Book Only): A ...

13th Edition
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ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Using the following information, prepare the Cost of Goods Sold section of an income statement.

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To determine

Compute cost of goods sold section of income statement.

Explanation

Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period.

Formula for computation of cost of goods sold:

DetailsAmount ($)Amount ($)Amount ($)
Merchandise Inventory, January 1  $XXX
Add: Purchases $XXX 
         Less: Purchase Returns and Allowances$XXX  
                  Purchases DiscountsXXXXXX 
Net Purchases XXX 
Add: Freight-In XXX 
Delivered Cost of Purchases  XXX
Cost of Goods Available for Sale  XXX
Less: Merchandise Inventory, December 31  XXX
Cost of Goods Sold  $XXX

Table (1)

Compute cost of goods sold section of income statement...

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