Question

S5B-17 (similar to) Upper G Wholesale Company began the year with merchandise inventory of $ 5 comma 000. During the​ year, Upper G purchased $ 97 comma 000 of goods and returned $ 6 comma 500 due to damage. Upper G also paid freight charges of $ 1 comma 600 on inventory purchases. At​ year-end, Upper G​'s ending merchandise inventory balance stood at $ 17 comma 200. Assume that Upper G uses the periodic inventory system. Compute Upper G​'s cost of goods sold for the year. Less: Plus: Less: Cost of Goods Sold

Answer 1

Cost of Goods Sold: 79,900

Step-by-step explanation:

The returns decreases the net purchases, and the freight-in is a necessary cost for get the goods so; it is activate through inventory.

Beginning 5,000

Purchased 97,000

Return (6,500)

Fregith-in 1,600

Good available: 97,100

The difference between goods available and ending inentory will be the cost of goods sale

Ending Inventory (17,200)

Cost of Goods Sold: 79,900