Fill in the Appropriate Blank Figures in the Income Statement $\quad$

question 82

Essay

Fill in the appropriate blank figures in the income statement below.
Gross sales $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\$ 7,500$
Sales returns and allowances $\quad$$\quad$$\quad$$\quad$$\quad$ A
Less: Cash discounts on sales $\quad$$\quad$$\quad$$\quad$ $250$
B ----------------------------- $\quad$$\quad$$\quad$$\quad$$\quad$$\$ 7,100$ Cost of goods sold
$\begin{array}{lll} \text { \text { Inventory, Tanuary } 1,2 x10} && 200 \\ \text { Purchases (gross)} & \$ 3,210 \\C----------- & 275 \\ \text { Less: Cash discounts on purchases } & 280 \\\text { Net Purchases } & \mathrm{D} & \\\text { Add: Freight In } & \underline{50} & \\\text { Total cost of merchandise acquired } & & \underline{2,705} \\\text { Cost of goods available for sale } & & 2,905 \\\text { Inventory, December } 31,2 \times 10 && \underline{280} \\\text { Cost of goods sold} 10 &&E \\\text {Gross Profit } &&\$F \\\end{array}$

---

Definitions:

Taxable Income

Income that is subject to taxes, typically calculated by deducting deductions and exemptions from gross income.

Tax Schedule

Detailed tax documents filed with the IRS to report certain types of income, deductions, or credits.

W-2

A form used in the United States to report wages paid to employees and the taxes withheld from them.

Federal Taxes

Federal taxes are financial charges imposed by the national government on income, business profits, sales, and other forms of economic activity.