SAMPLER DEPARTMENT STORE

INCOME STATEMENT
For The Fiscal Year Ended At November 30, 2020
Sales and Revenue
Sales Revenue $ 910,000
Less: Sales returns and allowances 200,000 200,000
Net Sales Revenue $ 710,000

Operating Expenses
Merchandise Inventory (Beginning) 443,600
Purchases 630,000
Freight-In 50,600
Less: Purchase Discounts 70,000
Purchase Returns and Allowances 30,000 100,000
Net Purchases 1,024,200
Cost of Goods Avaliable
Less: Merchandise Inventory (Ending) 362,000
Cost of Goods Sold 662,000

Gross Profit $ 48,000

Gross Profit Rate = 6.78%

 PERPETUAL METHOD
6-Sep Inventory 1,440
Accounts Payable 1,440

9-Sep Inventory 80
Cash 80

10-Sep Accounts Payable 38

Inventory 38

12-Sep Cash 780

Sales Revenue 780

14-Sep Sales Returns and Allowances 30

Cash 30

16-Sep Accounts Payable 1,440

Inventory 28.8
Cash 1,411.20

23-Sep Cash 780

Accounts Receivable 780
 PERIODIC METHOD
6-Sep Purchases 1,440
Accounts Payable 1,440

9-Sep Freight In 80
Cash 80

10-Sep Accounts Payable 38

Purchase Returns & Allowances 38

12-Sep Cash 780

Sales Revenue 780

14-Sep Sales Returns and Allowances 30

Cash 30

16-Sep Accounts Payable 1,440

Purchase Discount 28.8
Cash 1,411.20

23-Sep Cash 780

Accounts Receivable 780