B Wholesale Company began the year with merchandise inventory of $14,000. During the year, B purchased $91,000 of goods, had purchase discounts of $200, and returned $6,100 due to damage. B also paid freight charges of $1,100 on inventory purchases. At year-end, B's ending merchandise inventory balance stood at $17,700. Assume that B uses the periodic inventory system. Compute B's cost of goods sold for the year. Beginning Merchandise Inventory Purchases Less: Purchase Returns and Allowances Purchase Discounts Net Purchases Plus: Freight In Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 91,000 6.100 200 1,100 14,000
B Wholesale Company began the year with merchandise inventory of $14,000. During the year, B purchased $91,000 of goods, had purchase discounts of $200, and returned $6,100 due to damage. B also paid freight charges of $1,100 on inventory purchases. At year-end, B's ending merchandise inventory balance stood at $17,700. Assume that B uses the periodic inventory system. Compute B's cost of goods sold for the year. Beginning Merchandise Inventory Purchases Less: Purchase Returns and Allowances Purchase Discounts Net Purchases Plus: Freight In Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 91,000 6.100 200 1,100 14,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:B Wholesale Company began the year with merchandise inventory of $14,000. During the
year, B purchased $91,000 of goods, had purchase discounts of $200, and returned
$6,100 due to damage. B also paid freight charges of $1,100 on inventory purchases. At
year-end, B's ending merchandise inventory balance stood at $17,700. Assume that B uses
the periodic inventory system. Compute B's cost of goods sold for the year.
Beginning Merchandise Inventory
Purchases
Less: Purchase Returns and Allowances
Purchase Discounts
Net Purchases
Plus: Freight In
Net Cost of Inventory Purchased
Cost of Goods Available for Sale
Less: Ending Merchandise Inventory
Cost of Goods Sold
91,000
6.100
200
1,100
14,000
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