Question

Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.

2019 2020 2021
Sales revenue $292,090 _________ $413,950
Sales returns and allowances (10,530) (13,790) (17847)
Net sales 281560 345,615 396103
Beginning inventory 19,340 34,400 _________
Ending inventory 34400 43065 49896
Purchases 247720 260,690 297,524
Purchase returns and allowances (4,760) (7,410) (10,070)
Freight-in 8,790 _________ 11,900
Cost of goods sold (236,690) (252735) (292,523)
Gross profit on sales 44,870 92,880 _________

Answer 1

2020:

Sales revenue = Net Sales + Sales returns

= 345,615 + 13,790

= $359,405

Freight-In = Cost of goods sold - Beginning inventory - Purchases + Purchase returns + Ending inventory

= 252,735 - 34,400 - 260,690 + 43,065 + 7,410

= $8,120

2021:

Beginning inventory = Ending inventory 2020 = $43,065

Gross Profit on sales = Net sales - Cost of goods sold

= 396,103 - 292,523

= $103,580