Use this information to answer the following question. $$\begin{array} {| l | r | r | }
\hline \text { Account Name } & { \text { Debit } } & { \text { Credit } } \
\hline \text { Sales } & & 319,000 \
\text { Sales Retums and Allowances } & 10,000 & \
\text { Purcha5es } & 68,000 & \
\text { Purchases Returns and Allowances } & & 8,000\
\text { Freight-In } & 12,000 & \
\text { Selling Exgenses } & 30,000 & \
\text { General and Administrative Exgenses } & 110,000 &\
\hline
\end{array}$$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Income before income taxes for the period was

Question

Use this information to answer the following question. $$\begin{array} {| l | r | r | } 
\hline \text { Account Name } &  { \text { Debit } } & { \text { Credit } } \
\hline \text { Sales } & & 319,000 \
\text { Sales Retums and Allowances } & 10,000 & \
\text { Purcha5es } & 68,000 & \
\text { Purchases Returns and Allowances } & & 8,000\
\text { Freight-In } & 12,000 &  \
\text { Selling Exgenses } & 30,000 & \
\text { General and Administrative Exgenses } & 110,000 &\
\hline
\end{array}$$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Income before income taxes for the period was

Quizplus · Accepted Answer

To calculate income before income taxes, first determine the net sales: $319,000 (Sales) - $10,000 (Sales Returns and Allowances) = $309,000. Then calculate the cost of goods sold (COGS): $22,000 (Beginning Inventory) + $68,000 (Purchases) + $12,000 (Freight-In) - $8,000 (Purchases Returns and Allowances) - $14,000 (Ending Inventory) = $80,000. Subtract COGS from net sales to get gross profit: $309,000 - $80,000 = $229,000. Finally, subtract operating expenses: $229,000 - $30,000 (Selling Expenses) - $110,000 (General and Administrative Expenses) = $89,000.

Use This Information to Answer the Following Question In Addition,beginning Merchandise Inventory Was $22,000 and Ending Merchandise Inventory