Durable Equipment Company Uses the Periodic Inventory System Requirement A: Compute Cost of Goods Sold

question 231

Essay

Durable Equipment Company uses the periodic inventory system.Durable reported the following selected amounts at June 30,2019 (the beginning inventory balance is also provided):
$$\begin{array} { | l | r | } \hline \text { Merchandise Inventory, July 1, } & \\2018 & \$ 22,000 \\\hline \text { Merchandise Inventory, June 30, } \\2019 & 19,000 \\\hline \text { Purchases } & 96,000 \\\hline \text { Purchase Discounts } & 5,000 \\\hline \text { Purchase Returns and Allowances } & 8,500 \\\hline \text { Freight In } & 3,200 \\\hline \text { Net Sales Revenue } & 212,400\\\hline \text { Delivery Expense } & 1,400 \\\hline \text { Sales Salaries Expense } &44,200 \\\hline \text { Scheff, Capital } &69,500 \\\hline\end{array}$$ Requirement A: Compute cost of goods sold.
Requirement B: Compute gross profit.

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