Answer:

Would you please explain why 'Freight-in' is not included in operating expenses?

No CURSIVE PLEASE!

Freight-in $10,000 Rent expense $19,000 Freight-out 5,000 Salary expense 61,000 Insurance expense 12,000 Sales discounts 8,000 Purchases 220,000 Sales returns and allow 13,000 Purchase discounts 3,000 Sales 325,000 Purchase ret & allow 6,000 Inventory 1/1/19 42,000 Inventory 1/31/19 63,000 From this information you are to prepare a multi-step income statement for the XYZ Company for the month ending 1/31/19 Net sales Cost of goods sold Gross profit Operating expenses 304,000 200,000 104,000 Freight-out 5,000 Insurance exp. 12,000 Rent exp. 19,000 Salary exp. 61,000 97,000 Net income 7,000