Cinnamon Buns Company (CBC) started 2024 with $62,000 of inventory on hand. During 2024, $300,000 in inventory was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were a I made f.o.b. shipping point. CBC paid freight charges of $19,000. Inventory with an invoice amount of $8,000 was returned for credit. Cost of goods sold for the year was $336,000. CBC uses a perpetual inventory system. Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the inventory on hand at the beginning of 2024 was determined by a physical count that failed to realize that $20,000 of inventory was being held on consignment for Frosting R Us Incorporated. What is cost of goods available for sale, assuming CBC uses the gross method to record purchase discounts? Multiple Choice O $334,000 $337,480 $353,000 $373,000

Cinnamon Buns Company (CBC) started 2024 with $62,000 of inventory on hand. During 2024, $300,000 in inventory was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were a I made f.o.b. shipping point. CBC paid freight charges of $19,000. Inventory with an invoice amount of $8,000 was returned for credit. Cost of goods sold for the year was $336,000. CBC uses a perpetual inventory system. Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the inventory on hand at the beginning of 2024 was determined by a physical count that failed to realize that $20,000 of inventory was being held on consignment for Frosting R Us Incorporated. What is cost of goods available for sale, assuming CBC uses the gross method to record purchase discounts? Multiple Choice O $334,000 $337,480 $353,000 $373,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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