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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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