Response to the following problem:
The following data were extracted from the accounting records of Dahof Company for the year ended June 30, 2012: Merchandise inventory, July 1, 2011 = $250,000
Merchandise inventory, June 30, 2012 = $325,000
Purchases = $2,100,000
Purchase returns and allowances = $50,000
Purchase discounts = $39,000
Sales = $3,250,000
Freight In = $12,500
a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2012, using the periodic inventory system.
b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2012. Show your work.
c. Would the gross profit be different f the perpetual inventory system was used instead of the periodic inventory system?