Question
Preparing the Cost of Sales section of Income Statement. Merchandise Inventory, 6/30/2020 Merchandise Inventory, 7/1/2019 Purchases Purchases Returns and Allowances Purchases Discounts Transportation In P
Preparing the Cost of Sales section of Income Statement.
Merchandise Inventory, 6/30/2020
Merchandise Inventory, 7/1/2019
Purchases
Purchases Returns and Allowances
Purchases Discounts
Transportation In
P 310,000
260,000
830,000
8,300
16,600
12,450
Required: Prepare the cost of goods sold section of the income statement of Marah Valimento Housewares for the year ended
June 30, 2020.
ii. Determining the Beginning Merchandise Inventory
Information retrieved from the books of Gaudie Gallardo Pharmacy:
Required:
a) Compute the merchandise inventory as at Jan. 1, 2020.
b) Prepare the cost of goods sold section of the income statement of Gaudie Gallardo Pharmacy.
Cost of Goods Sold
Transportation In
Merchandise Inventory, 1/31/2020
Purchases Discounts
Purchases Returns and Allowances
Purchases
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
