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Cinnamon Buns Co. (CBC) started 2016 with $52,000 of merchandise on hand. During 2016, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system. Assuming CBC uses the gross method to record purchases, ending inventory would be: Group of answer choices

Sagot :

Answer:

Ending inventory $15,480

Explanation:

The computation of the ending inventory is shown below:

Beginning inventory $52,000  

Add: Inventory purchased $280,000  

Add: Freight $9,000  

less: Merchandise returned -$4,000  

Less: Discounts -$5,520 ($280,000 - $4,000) × 2%

Cost of goods available for sale $331,480  

Less Cost of goods sold -$316,000  

Ending inventory $15,480

The same would be considered and relevant

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