Given the Following Information,prepare in Good Form the Cost of Goods

question 78

Essay

Given the following information,prepare in good form the cost of goods sold section of an income statement for 2010.
$\begin{array}{ll}\text { Freight-In } & \$ 8,000 \\\text { Merchandise Inventory, December 31, } 2009 & 30,000 \\\text { Merchandise Inventory, December 31, } 2010 & 32,000 \\\text { Purchases } & 76,000 \\\text { Purchases Returns and Allowances } & 3,600\end{array}$

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Definitions:

Accounting Department

The division within a business that is responsible for managing the financial records, payroll, receivable and payable accounts, and financial reporting.

Passive Continental Margin

A region where the transition between oceanic and continental lithosphere that is not an active plate boundary occurs.

Oceanic Ridge

Underwater mountain systems formed by plate tectonics, consisting of continuous volcanic mountain chains in the ocean.

Trench

A narrow, steep-sided, elongate depression of the deep seafloor, formed by bending down of a subducting oceanic plate at a convergent plate boundary; includes the deepest parts of the ocean.