On June 30, 2019, the balances of the accounts appearing

On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows:

On June 30, 2019, the balances of the accounts appearing

Instructions
1. Does Simkins Company use a periodic or perpetual inventory system? Explain.
2. Prepare a multiple-step income statement for Simkins Company for the year ended
June 30, 2019. The merchandise inventory as of June 30, 2019, was $508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was $33,000.
3. Prepare the closing entries for Simkins Company as of June 30, 2019.
4. What would the net income have been if the perpetual inventory system had been used?

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