Garcia Company Has the Following Information as of December 31

Essay

Garcia Company has the following information as of December 31, the end of its fiscal year:
Instructions:
Using the information presented above, prepare the Cost of Goods Sold section of the income statement.
$\begin{array}{lr}\text { Purchases discounts } & 5,700 \\\text { Merchandise inventory, December } 31 & 1,57,300 \\\text { Purchases } & 51,300 \\\text { Merchandise inventory, January 1 } & 1,65,160 \\\text { Purchases returns and allowances } & 6,540 \\\text { Freight in } & 20,650 \\\text { Freight out } & 8,250\end{array}$ ​