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# Cost of goods sold is $7400. Beginning inventory is$3500 and ending inventory is $4000 wrote... Posts: 63 Rep: A month ago  Cost of goods sold is$7400. Beginning inventory is $3500 and ending inventory is$4000 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. Read 52 times 1 Reply

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wrote...
Educator
A month ago
 $350Solution:Following information is given:Cost of Goods Sold =$7400Opening inventory = $3500Purchase =$8250Closing stock = $4000Calculation to find PURCHASE RETURNS:Cost of Goods Sold = Opening Inventory + Net Purchase + Direct Expenses - Closing InventoryBy substituting the values, we get:7400 = 3500 + Net Purchase + 0 - (4000)Net Purchase = 7400 + 4000 - 3500=$7900Therefore, Net Purchase = Total Purchase - Purchase Returns7900 = 8250 - Purchase returnsPurchase Returns = 8250 - 7900= \$350