You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct:Inventory of $296,064 was on hand at the start of the year.Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase.A year-end inventory count revealed inventory of $389,760Required:a) Assume that the company uses periodic inventory system, calculate cost of sales.

Name: You are the senior accountant for a shoe wholesaler that uses the peri
Uploaded: 2024-03-20T06:32:37.000Z
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Description: You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct:Inventory of $296,064 was on hand at the start of the

Cost of sales = Opening inventory + Purchases - Closing inventory

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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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You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct:

Inventory of $296,064 was on hand at the start of the year.
Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase.
A year-end inventory count revealed inventory of $389,760

Required:

a) Assume that the company uses periodic inventory system, calculate cost of sales.

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