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The Trial Balance of Lester Co. at the end of its fiscal year, August 31, 2032, includes the following selected accounts: Merchandise Inventory $30,200; Purchases $299,990; Sales $512,000; Freight-In $10,500; Freight-Out $14,000; Office Salaries Expense $8,000; Sales Returns and Allowances $17,500; and Purchase Returns and Allowances $8,900. The ending Merchandise Inventory is $48,000.
Required:
Question 1) Prepare a Cost of Goods Sold section for the year ended August 31, 2032.
Question 2) Determine gross profit.
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