Two items are omitted in each of the following four lists ofincome statement dat

Question

Two items are omitted in each of the following four lists ofincome statement data. Determine the amounts of the missingitems, identifying them by letter.

Sales                                                  $400,000        $500,000        $1,000,000         (g)   

Sales returns andallowances                 (a)               15,000              (e)                30,500

Salesdiscounts                                     20,000             8,000             40,000           37,000

Netsales                                              350,000               (c)                910,000               (h)

Cost of merchandisesold                       (b)                285,000                (f)              540,000

Grossprofit                                           200,000              (d)                 286,500          150,000

Explanation / Answer

1.  Sales         400,000 -sales returns    30,000 -sales discounts 20,000 Netsales                             350,000 -COGS                               150,000 Grossprofit                          200,000 2. Sales 500,000 -sales returns 15,000 sales discounts 8,000 Net sales    477,000     -cost of goods sold    285,000    Grossprofit                           192,000 3.Sales          1,000,000 -sales returns     50,000 sales discounts   40,000 Netsales                              910,000 -COGS                                 623,500 Grossprofit                           286,500 4.Sales             757,500 -sales returns      30,500 sales discounts    37,000 Netsales                             690,000 -COGS                                540,000 Grossprofit                          150,000

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