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Question
The following data were extracted from the accounting records of Dana Designs for the year ended March 31:
Merchandise inventory, April 1 $530,000
Merchandise inventory, March 31 375,000
Purchases 270,000
Purchases returns and allowances 25,000
Purchases discounts 10,000
Sales 770,000
Freight in 3,000
Prepare the Cost of Merchandise Sold section of the income statement for the year ended March 31, using the periodic method.
Answer
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