McMillan Company Uses the Periodic Inventory System Required:
Calculate Each of the Following:
A

Essay

McMillan Company uses the periodic inventory system. It has compiled the following information in order to prepare the financial statements at December 31, 2014: $\begin{array}{lr}\text { Gross sales during 2014 } & \$ 2,000,000 \\\text { Sales returns and allowances during 2014 } & 50,000 \\\text { Beginning inventory, January 1,2014 } & 100,000 \\\text { Ending inventory, December 31, 2014 } & 120,000 \\\text { Purchases during 2014 } & 750,000\end{array}$ Required:
Calculate each of the following:
A. Cost of goods available for sale
B. Cost of goods sold
C. Gross profit