Accounts payableCustomer refunds payableDelivery expenseFreight inPurchasesPurchases discounts purchases returns and allowancesSalesSupplies expenseLabelsApril 30, 2018For the Year Ended April 30, 2018Operating expenses cost of merchandise purchase amount DescriptionsCost of goods soldCost of goods sold before estimated returns estimated returnsExpensesGross profitInventory, April 30, 2018Inventory, May 1, 2017Inventory available for saleNet incomeNet purchasesRevenuesTotal cost of merchandise purchased

A. Prepare the cost of goods sold section of the income statement for the year ended April 30, 2018, using the periodic inventory system. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. The negative amount should be indicated by the minus sign.

Harkins Company

Schedule of Cost of Goods Sold

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B. Determine the gross profit to be reported on the income statement for the year ended April 30, 2018.

C. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?

Answer rating: 100% (QA)

a Cost of merchandise sold Merchandise inventory May 1 2013 Purchases Less Purchases returns ... View the full answer