× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
Psyche Taloza M-Verano Psyche Taloza M-Verano
wrote...
Posts: 63
Rep: 0 0
2 years ago
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 187 times
1 Reply

Related Topics

Replies
wrote...
Valued Member
Educator
2 years ago
$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
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1094 People Browsing
Related Images
  
 168
  
 250
  
 152
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 308