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23 Nov 2019

Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details.

Purchases

$540,000

Beginning Merchandise Inventory

180,000

Purchase Returns and Allowances

60,000

Purchase Discounts

16,000

Freight In

17,000

Ending Merchandise Inventory

160,000

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Lelia Lubowitz
Lelia LubowitzLv2
1 Oct 2019
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Related questions

The following data were extracted from the accounting records ofHarkins company for the year ended April 30,2014:

merchandise inventory, may 1,2013 380,000

merchandise incentory, april 30,2014 415,000

purchases 3,800,000

purchases returns and allowances 150,000

purchases discounts 80,000

sales 5,850,000

freight in 16,600

a) prepare the cost of merchandise sold section of the yearended April 30,2014, using the periodic inventory system.

b) determine the gross profit to be reported on the incomestatement for the year ended April 30,2014.

c) would gross profit be different if the perpetual inventorysystem was used instead of the periodic inventory system?

The amount recorded for merchandise inventory includes all of the following except:

a. Purchase discounts.

b. Returns and allowances.

c. Freight costs paid by the buyer.

d. Freight costs paid by the seller.

e. Trade discounts.

Ā 

The following information was taken from Jackson Company'saccounting records for 2007:

sales revenue ............................. $247,000

freight-in ................................ 15,000

purchase returns .......................... 8,000

rent expense .............................. 28,000

beginning inventory ....................... 22,000

bad debt expense .......................... 19,000

purchases ................................. 86,000

cost of goods sold ........................ ?

freight-out ............................... 10,000

sales discounts ........................... 12,000

allowance for doubtful accounts ........... 18,000

purchase discounts ........................ ?

income tax expense ........................ 24,000

ending inventory .......................... 17,000

Jackson Company reported a net income of $65,000 for 2017.

Calculate the amount of purchase discounts reported by JacksonCompany during 2017. Do not use decimals in your answer.

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