Cost of Merchandise Sold and Related Items

The following data were extracted from the accounting records of Harkins Company for the year ended April $30,2019$:

Increase in estimated returns inventory

Merchandise inventory, May $1,2018$

Merchandise inventory, April $30,2019$

Purchases

Purchases returns and allowances

Purchases discounts

Sales

Freight in

$$11,200$

$447,800$

$559,800$

$3,638,400$

$112,000$

$67,200$

$5,597,600$

$16,800$

a$.$ Prepare the cost of merchandise sold section of the income statement for the year ended April $30,2019,$ using the periodic inventory system.

Harkins Company

Income Statement

For the Year Ended April $30,2019$

Cost of merchandise sold:

Cost of merchandise purchased:

Net purchases

Cost of merchandise sold

b$.$ Determine the gross profit to be reported on the income statement for the year ended April $30,2019.$

c$.$ Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?