Sullivan Company uses the periodic inventory method. The following balances were drawn from the accounts of Sullivan Company prior to the closing process: The amount of gross margin appearing on the income statement should be:

Question

Sullivan Company uses the periodic inventory method. The following balances were drawn from the accounts of Sullivan Company prior to the closing process:  The amount of gross margin appearing on the income statement should be:

Quizplus · Accepted Answer

Cost of goods sold = $6,400 + 16,000 + $800 - $400 - $7,200 = $15,600
Gross margin = $24,000 Sales - $15,600 COGS = $8,400

Sullivan Company Uses the Periodic Inventory Method