August 1 August 31 llowances $9 10 25
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Determine the Cost of Merchandise Sold for August Using a Periodic Inventory System**
Given the following data:
- **Merchandise inventory, August 1**: $97,070
- **Merchandise inventory, August 31**: $102,680
- **Purchases**: $254,100
- **Purchases returns and allowances**: $12,310
- **Purchases discounts**: $5,360
- **Freight in**: $3,120
**Task**: Calculate the cost of merchandise sold for August.
Start by computing the net purchases, add the freight in, and apply the periodic inventory method to find the cost of goods sold.
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