2 Using the following data taken from Hsus Imports Inc prepa

2. Using the following data taken from Hsu\'s Imports Inc., prepare the cost of merchandise sold section the income statement for the year ended March 31, 2011 Merchandise inventory, April 1, 2010 t=? Merchandise inventory, March 31, 2011 Purchases Purchases returns and allowances Purchases discounts $ 193,250 180,100 1,079,600 51,200 18,500 Freishtin

Solution

Cost of goods sold section :

Cost of goods sold
Merchandise inventory, April 1,2010			193250
Purchases		1079600
Less: Purchase return and allowance	51200
Purchase discount	18500	-69700
Net purchase		1009900
Add: Freight in		19250
Cost of goods purchased			1029150
Cost of goods available for sale			1222400
Less; Merchandise inventory, march 31,2011			-180100
Cost of goods sold			1042300