I have a quick question:

When preparing a partial income statement for the given company showing the calculation of net sales and cost of goods sold, do all of the following go into it?

Inventory 2,841,300
Purchase discounts 376,800
Purchase Returns and allowances 1,322,000
Purchases 26,445,700
Sales Revenue 44,895,000
Sales Discounts 494,000
Sales returns and allowances 3,591,600
Transportation-in 742,400

If so, where would the transportation-in fall into it?

Thanks,

Vicki

CaptainForest

Yes. All of the above accounts would go into the partial income statement.

In regards to the transportation-in account, that would be a part of the calculation of total purchases.

Net Purchases = Purchases - Purchase discounts - Purchase Returns and allowances + Transportation-in