Question
The following information was taken from the accounting records of Bay Village Paving Co. for the month of January, 20--: Sales $857,000 Sales Returns and
The following information was taken from the accounting records of Bay Village Paving Co. for the month of January, 20--:
Sales $857,000
Sales Returns and Allowances 1,876
Sales Discounts 627
Purchases 378,000
Purchases Returns and Allowances 9,560
Purchases Discounts 2,760
Freight-In 3,700
Merchandise Inventory, January 1111,000
Merchandise Inventory, January 31106,000
Finish making a partial income statement for the month of January, showing gross profit.
Bay Village Paving Co.
Income Statement (partial)
For the month ended January 31, 20--
Sales
Sales returns and allowances
Sales discounts
Net sales
Cost of goods sold:
Merchandise inventory, January 1
Purchases
Purchases returns and allowances
Purchases discounts
Net purchases
Freight-in
Cost of goods purchased
Goods available for sale
Merchandise inventory, January 31
Cost of goods sold
Gross profit
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