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1. Cost of goods sold and related items

   The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2018:

   Estimated returns of current year sales	$ 14,100
   Inventory, May 1, 2017	$ 333,300
   Inventory, April 30, 2018	416,600
   Purchases	2,708,100
   Purchases returns and allowances	83,300
   Purchases discounts	50,000
   Sales	4,166,300
   Freight in	12,500

   a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2018, using the periodic inventory system.

   Harkins Company Income Statement For the Year Ended April 30, 2018

   Cost of merchandise purchasedFreight inInventory, May 1, 2017Inventory, April 30, 2018Purchases			$- Select -
   Cost of merchandise purchased:
   Cost of merchandise purchasedFreight inInventory, May 1, 2017Inventory, April 30, 2018Purchases		$- Select -
   Less: Freight inLess: Merchandise available for saleLess: Inventory, May 1, 2017Less: Inventory, April 30, 2018Less: Purchases returns and allowances		- Select -
   Less: Cost of merchandise purchasedLess: Freight inLess: Inventory, May 1, 2017Less: Inventory, April 30, 2018Less: Purchases discounts		- Select -
   Add: Cost of merchandise purchasedAdd: Freight inAdd: Inventory, May 1, 2017Add: Inventory, April 30, 2018Add: Purchases returns and allowances		- Select -
   Inventory available for saleTotal cost of merchandise purchased			- Select -
   Inventory available for saleTotal cost of merchandise purchased			$- Select -
   Less: Freight inLess: Inventory, May 1, 2017Less: Inventory, April 30, 2018Less: PurchasesLess: Purchases discounts			- Select -
   Cost of goods sold before estimated returnsInventory available for saleTotal cost of merchandise purchased			$- Select -
   Less: Estimated returnsLess: Freight inLess: Inventory, May 1, 2017Less: Inventory, April 30, 2018Less: Purchases discounts			- Select -
   Cost of goods sold			fill in the blank 4895b1fa0f9f074_21

   b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2018.

   c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?

   Yes or No

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