Cinnamon Buns Company (CBC) started 2024 with $52,000 of inventory on hand. During 2024, $280,000 in inventory was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Inventory with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system. Required: Assuming CBC uses the gross method to record purchases, compute the ending inventory.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cinnamon Buns Company (CBC) started 2024 with $52,000 of inventory on hand. During 2024,
$280,000 in inventory was purchased on account with credit terms of 2/10, n/30. All discounts were
taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Inventory with
an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000.
CBC uses a perpetual inventory system.
Required: Assuming CBC uses the gross method to record purchases, comput the ending inventory.
Transcribed Image Text:Cinnamon Buns Company (CBC) started 2024 with $52,000 of inventory on hand. During 2024, $280,000 in inventory was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Inventory with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system. Required: Assuming CBC uses the gross method to record purchases, comput the ending inventory.
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