Question

Barto Company provides this information for the month ended October 31, 2017: sales on credit $300,000, cash sales $150,000, sales discounts $5,000, and sales returns and allowances $19,000. Prepare the sales section of the income statement based on this information. Only this part: Explain where each of these items would appear on a multiple-step income statement: gain on disposal of plant assets, cost of goods sold, depreciation expense, and sales returns and allowances.

Answer 1

Answer:

The Multi-step income statement is attached, Please find it

Explanation:

The multi-step income statement is attached with this answer please find it.

Gain On Disposal will appear in the other income section of the multi-step income statement

Cost of goods sold will appear in the cost of goods sold section of the multi-step income statement

Depreciation expense will appear in the operating expense section of the multi-step income statement

Sales returns and allowances will appear in the sales / net sales section of the multi-step income statement