Question

The trial balance of Sheffield Corp. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $18,870; Purchases $224,790; Sales Revenue $204,200; Freight-In $9,780; Sales Returns and Allowances $4,720; Freight-Out $2,740; and Purchase Returns and Allowances $5,430. The ending inventory is $20,100.Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022.

Answer 1

Particulars Amount

Beginning inventory, September 1, 2013 $18,870

Purchase $ 224,790

Less: Purchase return and allowance $ 5,430

Net purchase $ 219,360

Add: Freight in $9,780

Cost of goods purchased $229,140

Cost of goods available for sale $248,010

Less: Inventory August 31,2014 $20,100

Cost of goods sold $227,910