Income Statement and Accounts for Merchandiser For the fiscal year, sales were $7,202,000 and the cost of merchandise sold was $4,140,000 a. What was the amount of gross profit? b. If total operating expenses were $242,000, could you determine net income? Yes, because there could be no other income and expense items that could affect the amount of net income. No, because there could be other income and expense items that could affect the amount of net income. d. Is Estimated Returns Inventory an asset, liability, or owner's equity account? What is its normal balance? b. If total operating expenses were $242,000, could you determine net income? c. Is Customer Refunds Payable an asset, liability, or owner's equity account? ce? Asset account Inventory an asset, liability, or owner's equity account? Liability account Owner's equity account ice? c. Is Customer Refunds Payable an asset, liability, or owner's equity account? What is its normal balance? Ins Inventory an asset, liability, or owner's equity account? Credit lance? Debit d. Is Estimated Returns Inventory an asset, liability, or owner's equity account? ice? Asset account Liability account Owner's equity account 7 d. Is Estimated Returns Inventory an asset, liability, or owner's equity account? What is its normal balance? Credit Debit &