Reference no: EM132515018

Question -

a) The following information is available for Potts Company: Potts, Capital $ 50,000 Potts, Drawing $ 32,000 Sales 510,000 Sales Returns and Allowances 20,000 Sales Discounts 7,000 Cost of Goods Sold 347,000 Freight-out 2,000 Advertising Expense 15,000 Interest Expense 19,000 Store Salaries Expense 45,000 Utilities Expense 18,000 Depreciation Expense 7,000 Interest Revenue 25,000. Using the above information, prepare the multiple-step income statement for Potts Company.

b) Swann Company uses a periodic inventory system and has these account balances: Purchases $600,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-in $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000. Determine the cost of goods sold.