Entity B

Statement of Cost of goods sold and Gross profit

For the period ended December 31, 20x1

Net Sales:
Sales ₱320,000.00
Sales discounts - 10,000.00
Sales returns - 8,000.00 ₱302,000.00
Cost of goods sold:
Inventory, beg. 27,000.00
Purchases 145,000.00
Freight-in 7,000.00
Purchase discounts - 4,000.00
Purchase returns - 3,000.00
Total goods available for sale 172,000.00
Less: Inventory, end. - 32,000.00 - 140,000.00
Gross profit ₱162,000.00