What is cost of goods available for sale,assuming CBC uses the gross method?
A)$312,480.
B)$326,000.
C)$331,480.
D)$337,000.

Question

Quizplus · Accepted Answer

Cost of goods available for sale = Beginning inventory + net purchases = $210,000 + $121,480 = $331,480. Since the question specifies that CBC uses the gross method, discounts received on purchases are not deducted from the cost of purchases, but rather reflected as a reduction of the cost of goods sold. Therefore, the answer is C, $331,480.

What Is Cost of Goods Available for Sale,assuming CBC Uses