Question 7 Your answer is partially correct. Try again At the end of Oates Depar
ID: 2339022 • Letter: Q
Question
Question 7 Your answer is partially correct. Try again At the end of Oates Department Store's fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance Freight-In Inventory (beginning) Purchases Purchase Discounts Purchase Returns and Allowances Sales Revenue Sales Returns and Allowances 5,870 47,908 711,080 8,120 7,842 1,046,320 23,200 Additional facts: 1. Inventory on November 30, 2017, is $41,992 2. Note that Oates Department Store uses a periodic system Prepare an income statement through gross profit for the year ended November 30, 2017Explanation / Answer
OATES DEPARTMENT STORE
Income Statement (Partial)
For the year ended November 30,2017
Sales
Sales Revenue
$ 1,046,320.00
Less: Sales return and Alliances
$ 23,200.00
Net sales
$ 1,023,120.00
Cost of Goods sold
Inventory ,December 1,2016
$ 47,908.00
Purchases
$ 711,080.00
Less
Purchase returns and Alliances
$ 7,842.00
Purchase Discount
$ 8,120.00
$ 15,962.00*
Net Purchases
$ 695,118.00**
Add- freight In
$ 5,870.00
Cost of Goods Purchased
$ 700,988.00
Cost of Goods Available for Sale
$ 748,896.00***
Less: Inventory November 30 2017
$ 41,992.00
Cost of Goods sold
$ 706,904.00
Gross Profit
$ 316,216.00
*7842+8120
**711080-15962
***Cost of Goods purchased +Beginning Inventory
OATES DEPARTMENT STORE
Income Statement (Partial)
For the year ended November 30,2017
Sales
Sales Revenue
$ 1,046,320.00
Less: Sales return and Alliances
$ 23,200.00
Net sales
$ 1,023,120.00
Cost of Goods sold
Inventory ,December 1,2016
$ 47,908.00
Purchases
$ 711,080.00
Less
Purchase returns and Alliances
$ 7,842.00
Purchase Discount
$ 8,120.00
$ 15,962.00*
Net Purchases
$ 695,118.00**
Add- freight In
$ 5,870.00
Cost of Goods Purchased
$ 700,988.00
Cost of Goods Available for Sale
$ 748,896.00***
Less: Inventory November 30 2017
$ 41,992.00
Cost of Goods sold
$ 706,904.00
Gross Profit
$ 316,216.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.