Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $800,000; Purchase Returns and Allowances $250,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $50,000; ending inventory of $60,000; and net sales of $1,500,000.

Instructions:

Determine the a) cost of goods sold and b)Gross profit ( show computations )

Prepare a detailed income statement