FINANCIAL ACCOUNTING: MADE EASY 44 Learning Activity No. 1: Various terms in the Income Statement preparation and Computation of Cost of Sales Directions: Compute the missing items. Indicate your final answer beside the ? sign. Show your solution in the space provided. Case 1: Merchandise Inventory, beginning 180,000 Purchases ? Goods Available for Sale 370,000 Cost of Sales 220,000 Merchandise Inventory, end 150,000 Purchase Discounts 10,000 Case 2: Purchases 350,000 Purchase Returns & Allowances 15,000 Merchandise Inventory, beginning ? Freight-in 25,000 Cost of Sales ? Total Goods Available for Sale 510,000 Merchandise Inventory, end 285,000 Case 3: Merchandise Inventory, beginning P 220,000 Cost of Sales 270,000 Purchases ? Total Goods Available for Sale 750,000 Merchandise Inventory, end ? Purchase Discounts 20,000 Purchase Returns & Allowances 30,000 Case 4: Net Sales 520,000 Sales Returns & Allowances 10,000 Sales 560,000 Sales Discounts ? Case 5: Gross Profit 150,000 Net Sales 350,000 Operating Expenses ? Profit for the Period 50,000 Cost of Sales