Francine Pty Ltd uses the periodic inventory system because there is a Purchases account and beginning and ending inventory is given. In addition to the information provide in the question, all other expenses amount to $100,000.

(a) Prepare the complete statement of Profit or Loss, not just the cost of sales section asked for in E5.2.

(b) Prepare the closing entries for the accounts that you have balances for and complete the general ledger t-account for Inventory.

Prepare cost of sales section. (LO2) E5.2 The trial balance of Francine Pty Ltd at the end of its financial year, 30 June 2016, includes these accounts: Beginning Inventory $56 760; Purchases $469 920; Sales $627 000; Sales Returns and Allowances $9900; Freight-out $3300; Purchase Returns and Allowances $6600. The ending inventory is $85 800. Required Prepare the cost of sales section of the statement of profit or loss for the year ending 30 June 2016