On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows:

Instructions
1. Does Wyman Company use a periodic or perpetual inventory system? Explain.
2. Prepare a multiple-step income statement for Wyman Company for the year ended
December 31, 2019. The merchandise inventory as of December 31, 2019, was $305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $30,000.
3. Prepare the closing entries for Wyman Company as of December 31, 2019.
4. What would the net income have been if the perpetual inventory system had been used?

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Purchases Returns and Allowances Purchases Discounts Merchandise Inventory January 1, 2019 Estimated Returns Inventory Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Accumulated Depreciation Store Equipment Accumulated Depreciation Accounts Payable Office Supplies Expense Miscellaneous Administrative Expense Shirley Wyman, Drawing