A company had purchased inventory for $85,000. Purchase returns and allowances were $3,500, and freight in was $5,500. If the beginning inventory was $45,000 and the ending inventory was $38,000, what is the cost of merchandise sold?

A company had purchased inventory for $85,000. Purchase returns and allowances were $3,500, and freight in was $5,500. If the beginning inventory was $45,000 and the ending inventory was $38,000, what is the cost of merchandise sold?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Question

Please provide the answer to this general accounting question using the right approach.

A company had purchased inventory for $85,000.
Purchase returns and allowances were $3,500, and freight
in was $5,500. If the beginning inventory was $45,000 and
the ending inventory was $38,000, what is the cost of
merchandise sold?

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What's the Solution?
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