Determining the Beginning Merchandise Inventory

Information retrieved from the books of Gaudie Gallardo Pharmacy:

Required:

a) Compute the merchandise inventory as at Jan. 1, 2020.

b) Prepare the cost of goods sold section of the income statement of Gaudie Gallardo Pharmacy.

Cost of Goods Sold

Transportation In

Merchandise Inventory, 1/31/2020

Purchases Discounts

Purchases Returns and Allowances

Purchases

P 836,000

20,000

180,000

18,000

9,000

900,000