The following summarizes Tesla’s merchandising activities for the year. Set up T-accounts for Merchandise Inventory and for Cost of Goods Sold. Enter each line item into one of the two T-accounts and compute the T-account balances. Cost of merchandise sold to customers . $196,000 Merchandise inventory, beginning-year . 25,000 Cost of merchandise purchases, gross amount . 192,500 Shrinkage on merchandise as of year-end . 800 Cost of transportation-in for merchandise purchases . 2,900 Cost of merchandise returned by customers and restored to inventory 2,100 Discounts received from suppliers on merchandise purchases 1,700 Returns to and allowances from suppliers on merchandise purchases . 4,000
The following summarizes Tesla’s merchandising activities for the year. Set up T-accounts for Merchandise
Inventory and for Cost of Goods Sold. Enter each line item into one of the two T-accounts and compute
the T-account balances. Cost of merchandise sold to customers . $196,000
Merchandise inventory, beginning-year . 25,000
Cost of merchandise purchases, gross amount . 192,500
Shrinkage on merchandise as of year-end . 800
Cost of transportation-in for merchandise purchases . 2,900
Cost of merchandise returned by customers and restored to inventory 2,100
Discounts received from suppliers on merchandise purchases 1,700
Returns to and allowances from suppliers on merchandise purchases . 4,000
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