Question

PLEASE ANSWER ASAP******

Using the following information for a periodic inventory system, what is the amount of net income?

Purchases	$34,621		Selling expense	$673
Inventory, September 1	5,249		Inventory, September 30	10,383
Administrative expense	504		Sales	46,945
Rent revenue	1,153		Interest expense	940

a.$29,487

b.$16,494

c.$940

d.$33,735

Answer 1

Answer: b.$16,494

Explanation

Income Statement
	$	$
Revenue:
Sales	46,945.00
Rent revenue	1,153.00
Total Revenue		48,098.00
Less Expenses:
Cost of goods sold	29,487.00
Administrative expense	504.00
Selling expense	673.00
Interest expense	940.00
Total Expenses		31,604.00
Net Income (Loss)		16,494.00
Explanation
Cost of goods sold
Inventory, September 1	5,249.00
Add: Purchases	34,621.00
Less: Inventory, September 30	(10,383.00)
Cost of goods sold	29,487.00