Question The following data were extracted from the accounting records ofMeridan designs for the year edned march 31, 2014 Merchandise inventory april 1 2013 $530,000 Merchandise inventory march 31 2014 375,000 purchases 270,000 purchases on returns and allowances 25,000 purchase discounts 10,000 sales 790,000 sales returns 20,000 freight in 3,000 Prepare the cost of merchandise sold section of the incomestatement for the year ended march 31,2014 using the periodicmethod. Also determine gross profit.

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 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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The following data were extracted from the accounting records ofMeridan designs for the year edned march 31, 2014

Merchandise inventory april 1 2013 $530,000

Merchandise inventory march 31 2014 375,000

purchases 270,000

purchases on returns and allowances 25,000

purchase discounts 10,000

sales 790,000

sales returns 20,000

freight in 3,000

Prepare the cost of merchandise sold section of the incomestatement for the year ended march 31,2014 using the periodicmethod. Also determine gross profit.

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