Question

Advertising expense $1,100 Commissions expense $3,000 Delivery expense $1,500 Insurance expense $1,000 Opening inventory $6,000 Purchases $37,000 Purchase returns and allowances $3,100 Rent expense $2,900 Salaries expense $4,000 Sales (gross) $79,000 Sales returns and allowances $1,000 Transportation-in $2,300 The merchandise inventory at June 30, 2019 amounted to $8,000. Required: 1. Prepare a classified income statement. Assume all expenses not related to cost of goods sold are selling expenses. 2. Compute gross profit percentage.

          Advertising expense                  $1,100 
Commissions expense     $3,000 
Delivery expense      $1,500 
Insurance expense      $1,000 
Opening inventory      $6,000 
Purchases       $37,000 
Purchase returns and allowances    $3,100 
Rent expense       $2,900 
Salaries expense     $4,000 
Sales (gross)       $79,000 
Sales returns and allowances     $1,000 
Transportation-in      $2,300 
The merchandise inventory at June 30, 2019 amounted to $8,000. 

Required: 
1. Prepare a classified income statement. Assume all expenses not related to cost of goods sold are selling expenses. 
2. Compute gross profit percentage.

Added by Christine S.

Question

Please give Ace some feedback