PRESENTATION OF SALES REVENUE AND COST OF GOODS SOLD. The accountant for Sneva, Inc., collected the following data for 19x’: L01

REQUIRED:
Assume that Sneva uses the periodic system and records purchases and sales using the gross method. Prepare an income statement through gross margin including a computation of cost of goods sold. (Hint: Some of the data may not be relevant.) lol

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Beginning inventory Ending inventory $ 26,700 Purchases 28,300 186,100 Purchase discounts 3,800 Purchase returns 7,400 Transportation-in (purchases) 4,300 Transportation-out (sales) 6,700 Sales revenue 309,100 Sales returns Sales discounts 6,600 4,500