Problem 5-6A Your answer is partially correct. Try again. At the end of Pina Col
ID: 2538107 • Letter: P
Question
Problem 5-6A Your answer is partially correct. Try again. At the end of Pina Colada Corp.'s fiscal year on November 30, 2019, these accounts appeared in its adjusted trial balance. Freight-In Inventory Purchases Purchase Discounts Purchase Returns and Allowances Sales Revenue Sales Returns and Allowances $7,900 39,200 588,000 6,800 2,900 1,043,500 17,400 Additional facts 1. Merchandise inventory on November 30, 2019, is $53,100 2. Pina Colada Corp. uses a periodic system. Prepare an income statement through gross profit for the year ended November 30, 2019.Explanation / Answer
Prepare income statement :
Sales Sales revenue 1043500 Less; Sales return and allowance (17400) Net sales 1026100 Cost of goods sold Beginning inventory 39200 Purchase 588000 Less: Purchase return and allowance (2900) Purchase discount (6800) (9700) Net purchase 578300 Add; Freight in 7900 Cost of goods purchased 586200 Cost of goods available for sale 625400 Less: Inventory Nov, 30, 2019 (53100) Cost of goods sold (572300) Gross profit 453800