Calculation of Cost of Goods Sold: Periodic Inventory SystemPrepare the cost of goods sold section for Adams Gift Shop. The following amounts are known:Beginning merchandise inventory$27,000Ending merchandise inventory22,000Purchases78,000Purchases returns and allowances3,900Purchases discounts6,000Freight-in350 Adams Gift ShopIncome StatementFor Year Ended December 31, 20--Cost of goods sold: $- Select - $- Select - $- Select - - Select -- Select - $- Select - - Select - - Select - $- Select - - Select - Cost of goods sold $fill in the blank 20

Step 1: The cost of goods sold section of the income statement is prepared to calculate and show the…

Answered: Calculation of Cost of Goods Sold:…

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter14: Adjustments And The Work Sheet For A Merchandising Business

Section: Chapter Questions

Problem 4SEA: WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY ADJUSTMENTS: PERIODIC INVENTORY SYSTEM The following...

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Calculation of Cost of Goods Sold: Periodic Inventory System

Prepare the cost of goods sold section for Adams Gift Shop. The following amounts are known:

Beginning merchandise inventory	$27,000
Ending merchandise inventory	22,000
Purchases	78,000
Purchases returns and allowances	3,900
Purchases discounts	6,000
Freight-in	350

Adams Gift ShopIncome StatementFor Year Ended December 31, 20--