eBook Cost of Merchandise Sold and Related Items The following data were extracted from the accounting records of Danhof Company for the year ended June 30, 20Y2 $ 382,300 Merchandise inventory, July 1, 20Y1 Merchandise inventory, June 30, 20Y2 Purchases 477,800 3,105,900 Purchases returns and allowances 95,600 Purchases discounts 57,300 4,778,300 Sales Freight in 14,300 Hide a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 20Y2, using the Danhof Company Cost of Merchandise Sold Section of the Income Statement a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 20Y2, using the periodic inventory system. Danhof Company Cost of Merchandise Sold Section of the Income Statement For the year ended June 30, 20Y2 382300 Merchandise inventory, June 3 Cost of merchandise purchase 3105900 Less: Purchases returns and al s -95600 Less: Purchases discounts -57300 2953000 Net purchases 14300 Add: Cost of merchandise pure 3349600 Net purchases -477800 Freight in 2871800 Less: Merchandise inventory.. 2871800 Cost of merchandise sold 2871800 Hide Feedback Partially Correct Check My Work Feedback The cost of merchandise sold section includes the beginning inventory, net purchases, freight in, and the ending inventory. b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2012 $ 2871800 Hide Feedback Incorrect Check My Work Feedback (b) Sales minus the cost of merchandise sold equals the gross profit. 0-Icon Key Exercise 4-4 Algorithmic