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The following data were extracted from the accounting records of Harkins Company for the year ended April 30 2016 Merchandise inventory

The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2016: Merchandise inventory, May 1, 2015 .................... $ 380,000 Merchandise inventory, April 30, 2016 .................... 415,000 Purchases ..................................................... 3,800,000 Purchases returns and allowances .......................... 150,000 Purchases discounts ............................................ 80,000 Sales .......................................................... 5,850,000 Freight in ........................................................ 16,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2016, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2016. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?

Apr 11 2020 View more View Less

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