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Question
Using the following data taken from Hsu’s Imports Inc., which uses a periodic inventory system, prepare the Cost of Merchandise Sold section of the income statement for the year ended March 31.
| Merchandise inventory, April 1 | $ 193,250 |
| Merchandise inventory, March 31 | 180,100 |
| Purchases | 1,079,600 |
| Purchases returns and allowances | 51,200 |
| Purchases discounts | 18,500 |
| Sales | 1,860,000 |
| Freight in | 19,250 |
Answer
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