Determine gross profit to be reported on income statement

Reference no: EM131527554

Question: The following data were extracted from the accounting records of Meniscus Company for the year ended April 30, 2006:

Merchandise inventory, May 1, 2005 $ 121,200

Merchandise inventory, April 30, 2006 142,000

Purchases 985,000

Purchases returns and allowances 23,500

Purchases discounts 21,000

Sales 1,420,000

Transportation in 11,300

a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2006, using the periodic inventory method.

b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2006.

Reference no: EM131527554

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