The following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008:
Merchandise inventory, July 1, 2007 |
$183,250 |
Merchandise inventory, June 30, 2008 |
200,100 |
Purchases |
1,279,600 |
Purchases returns and allowances |
41,200 |
Purchases discounts |
20,500 |
Sales |
1,800,000 |
Transportation in |
17,250 |
a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system.
b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008.