Chapter 5, Problem 5.14SE

Computing cost of goods sold in a periodic inventory system

X Wholesale Company began the year with merchandise inventory of $ 11,000. During the year, X purchased $93,000 of goods and returned $6,700 due to damage. X also paid freight charges of $ 1,200 on inventory purchases. At year-end, X’s ending merchandise inventory balance stood at $ 17,300. Assume that X uses the periodic inventory system. Compute X’s cost of goods sold for the year.