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Title: Cost of goods sold is $7400. Beginning inventory is $3500 and ending inventory is $4000 Post by: Psyche Taloza M-Verano on Mar 28, 2022 In a periodic inventory system, the entry to record the sale of $2,000 of merchandise on account. If there is no freight in and total purchases were $8250, how much were purchased returns and allowances.
Title: Re: Cost of goods sold is $7400. Beginning inventory is $3500 and ending inventory is $4000 Post by: bio_man on Mar 29, 2022 $350
Solution: Following information is given: Cost of Goods Sold = $7400 Opening inventory = $3500 Purchase = $8250 Closing stock = $4000 Calculation to find PURCHASE RETURNS: Cost of Goods Sold = Opening Inventory + Net Purchase + Direct Expenses - Closing Inventory By substituting the values, we get: 7400 = 3500 + Net Purchase + 0 - (4000) Net Purchase = 7400 + 4000 - 3500 = $7900 Therefore, Net Purchase = Total Purchase - Purchase Returns 7900 = 8250 - Purchase returns Purchase Returns = 8250 - 7900 = $350 |