PROBLEM: To test your knowledge of the relationships of these items, insert the missing figures in the following income statement. Note that gross profit is 40% of net sales and profit is 10% of net...

Extracted text: PROBLEM: To test your knowledge of the relationships of these items, insert the missing figures in the following income statement. Note that gross profit is 40% of net sales and profit is 10% of net sales. Net Sales Gross Sales Less: Sales Returns & Allowances P45,000 15,000 Sales Discounts Net Sales P Cost of Goods Sold P220,000 Inventory, Jan. 1, 2018 Purchases P985,000 Less: Purchases Returns &Allowances P31,000 20,000 Purchases Discounts Net Purchases Transportation-In 36,000 Net Cost of Purchases Cost of Goods Available for Sale Less: Inventory, Dec. 31, 2018 Cost of Goods Sold · 260,000 Gross Margin from Sales Operating Expenses P620,000 Profit P REQUIRED: Complete the missing elements by showing your supporting computations. (No need to prepare the income statement.) What should be the amount of the following? a) Gross Sales b) Total of contra-sales accounts