The following data were extracted from the accounting records of Dahof Company f

ID: 2364315 • Letter: T

Question

The following data were extracted from the accounting records of Dahof Company for the year ended June 30, 2012: Merchandise inventory, July 1, 2011 = $250,000 Merchandise inventory, June 30, 2012 = $325,000 Purchases = $2,100,000 Purchase returns and allowances = $50,000 Purchase discounts = $39,000 Sales = $3,250,000 Freight In = $12,500 a. prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2012, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2012. Show your work. c. Would the gross profit be different f the perpetual inventory system was used instead of the periodic inventory system?

Explanation / Answer

Opening

325000

Purchases

2100000

Purchase Returns

-50000

Purchase Discounts

-39000

Freght

12500

Cost of goods sold

2348500

Sales

3250000

COGS

-2348500

Gross Profit

901500

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