Belk Antiques uses the periodic inventory system to account for
Belk Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Belk’s records for the year 2013: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000; sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period.

Required
a. Prepare a schedule of cost of goods sold.
b. Prepare a multistep income statement.

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