Exercise 8-6 Two or more items are omitted in each of the following tabulations
ID: 2492137 • Letter: E
Question
Exercise 8-6
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.
2013
2014
2015
2013
2014
2015
Sales revenue $294,170 $ $414,180 Sales returns and allowances 11,200 13,470 Net sales 347,350 Beginning inventory 21,590 33,560 Ending inventory Purchases 263,090 298,600 Purchase returns and allowances 5,180 8,330 10,440 Freight-in 8,140 9,480 12,440 Cost of goods sold 236,230 294,740 Gross profit on sales 46,740 91,560 98,700Explanation / Answer
2013
2014
2015
Sales Revenue
294170
360820
414180
Sales Returns and Allowances
11200
13470
20740
Net Sales
282970
347350
393440
Beginning Inventory
21590
33560
42010
Ending Inventory
33560
42010
47870
Purchases
245240
263090
298600
Purchase Returns and Allowances
5180
8330
10440
Freight-in
8140
9480
12440
Cost of Goods Sold
236230
255790
294740
Gross Profit on Sales
46740
91560
98700
2013:
Net Sales = Sales Revenue – Sales Returns and Allowances
= 294170 – 11200
= 282970
Ending Inventory = Beginning Inventory of 2014
= 33560
Cost of Goods Sold = Beginning Inventory + Purchases – Purchase Returns and Allowances + Freight-in – Ending Inventory
This implies,
236230 = 21590 + Purchases - 5180 + 8140 – 33560
Purchases = 245240
2014:
Sales Revenue = Net Sales + Sales Returns and Allowances
= 347350 + 13470
= 360820
Cost of Goods Sold = Net Sales – Gross Profit
= 347350 – 91560
= 255790
Cost of Goods Sold = Beginning Inventory + Purchases – Purchase Returns and Allowances + Freight-in – Ending Inventory
This implies,
255790 = 33560 + 263090 – 8330 + 9480 – Ending Inventory
Ending Inventory = 42010
2015:
Beginning Inventory = Ending Inventory of 2014
= 42010
Cost of Goods Sold = Beginning Inventory + Purchases – Purchase Returns and Allowances + Freight-in – Ending Inventory
This implies,
294740 = 42010 + 298600 – 10440 + 12440 – Ending Inventory
Ending Inventory = 47870
Net Sales = Cost of Goods Sold + Gross Profit
= 294740 + 98700
= 393440
Sales Returns and Allowances = Sales Revenue – Net Sales
= 414180 – 393440
= 20740
2013
2014
2015
Sales Revenue
294170
360820
414180
Sales Returns and Allowances
11200
13470
20740
Net Sales
282970
347350
393440
Beginning Inventory
21590
33560
42010
Ending Inventory
33560
42010
47870
Purchases
245240
263090
298600
Purchase Returns and Allowances
5180
8330
10440
Freight-in
8140
9480
12440
Cost of Goods Sold
236230
255790
294740
Gross Profit on Sales
46740
91560
98700
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