Q1: A: B: Statement of cost of goods sold Particular OMR OMR OMR Merchandise Inventory (Beginning) 20,000 Purchases 240,000 Purchase discount 25,000 Purchase returns and allowances 15,000 40,000 Net Purchases 200,000 Transportation In 5,000 Net cost of Purchases Cost of goods available for sales Merchandise Inventory (Closing) Cost of Goods Sold 205,000 225,000 29,000 196,000 Target Corporation A Multiple-Step Income Statement For the year ended December 31, 2021 Particular OMR Sales OMR 335,000 OMR Sales discounts 8,000 Sales returns and allowances 15,500 -23,500 Net sales 311,500 Cost of Goods Sold 196,000 Gross profit 115,500 Operating Expenses : Selling expenses 33,500 General and administrative expenses 19,800 Interest expense 800 Total expenses -54,100 Net Income 61,400