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Use the following information from the records of Preston's partners to prepare an income statement under the periodic inventory system for the year ended 30 june 2017 Purchases $ 186,000 inventory,1 July 2016 $13,860 inventory, 30 june 2017 $12,920 selling and distribution expenses $ 45,420 sales $268,860 purchases returns and allowances $ 4,420 sales returns and allowances $ 6,220 Administrative expenses $ 16,460 freight inwards $ 3,180 finance expenses $ 2,020

Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT Administrative expenses Freight inwards Finance expenses 16 460 3 180 2020 PRESTON PARTNERS Income Statement for the year ended 30 June 2017 INCOME Sales Revenue Less: Sales returns and allowances Net sales revenue $268 860 6 220 262 640 $13 860 $186 600 4420 182,180 Cost of sales: Beginning inventory Purchases Less: Purchases returns and allowances Net Purchases Freight inwards Cost of net purchases Cost of goods available for sale Less: Ending inventory Cost of sales GROSS PROFIT 3 180 185 360 199 220 12920 186 300 76 340 EXPENSES: Selling and Distribution expenses Administrative expenses Finance and other expenses 45 420 16 460 2020 63 900 $12 440 PROFIT

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