Exercise 4-21A (Static) Determining cost of goods sold: Periodic system (Appendix) LO 4-9 Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000; sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold. b. Prepare a multistep income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of cost of goods sold. TIPPAH ANTIQUES Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2 Beginning inventory Plus: Purchases Plus: Transportation-in $ 25,100 307,000 1,870 Required A Required B Prepare a multistep income statement. TIPPAH ANTIQUES Income Statement. For the Year Ended December 31, Year 2 Net sales revenue $ 720,680 Cost of goods sold 295,770 Gross margin Operating expenses 424,910 51,700 Net income $ 373,210 < Required A Required B > Required A Required B Prepare a schedule of cost of goods sold. TIPPAH ANTIQUES Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2 Beginning inventory Plus: Purchases Plus: Transportation-in Less: Purchase returns and allowances Cost of goods available for sale Less: Ending inventory Cost of goods sold $ 25,100 307,000 1,870 12,000 321,970 25,000 $ 296,970