The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2018:

Estimated returns of current year sales	$ 11,600
Inventory, May 1, 2017	380,000
Inventory, April 30, 2018	415,000
Purchases	3,800,000
Purchases returns and allowances	150,000
Purchases discounts	80,000
Sales	5,850,000
Freight in	16,600
A.	Prepare the cost of goods sold section of the income statement for the year ended April 30, 2018, using the periodic inventory system. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. Negative amount should be indicated by the minus sign.
B.	Determine the gross profit to be reported on the income statement for the year ended April 30, 2018.
C.	Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?

Accounts

Accounts payableCustomer refunds payableDelivery expenseFreight inPurchasesPurchases discountsPurchases returns and allowancesSalesSupplies expenseLabelsApril 30, 2018For the Year Ended April 30, 2018Operating expensesCost of merchandise purchasedAmount DescriptionsCost of goods soldCost of goods sold before estimated returnsEstimated returnsExpensesGross profitInventory, April 30, 2018Inventory, May 1, 2017Inventory available for saleNet incomeNet purchasesRevenuesTotal cost of merchandise purchased

A. Prepare the cost of goods sold section of the income statement for the year ended April 30, 2018, using the periodic inventory system. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. Negative amount should be indicated by the minus sign.

Harkins Company

Schedule of Cost of Goods Sold

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B. Determine the gross profit to be reported on the income statement for the year ended April 30, 2018.

C. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?