Mantle Company's accounting records show the following at the year ending on December 31 2016: $$\begin{array} { l r }
\text { Purchase Discounts } & \$ 16,500 \
\text { Freight - In } & 22,100 \
\text { Purchases } & 413,000 \
\text { Beginning Inventory } & 47,000 \
\text { Ending Inventory } & 57,600 \
\text { Purchase Returns } & 15,600
\end{array}$$ Using the periodic system the cost of goods purchased is

Question

Mantle Company's accounting records show the following at the year ending on December 31 2016: $$\begin{array} { l r } 
\text { Purchase Discounts } & \$ 16,500 \
\text { Freight - In } & 22,100 \
\text { Purchases } & 413,000 \
\text { Beginning Inventory } & 47,000 \
\text { Ending Inventory } & 57,600 \
\text { Purchase Returns } & 15,600
\end{array}$$ Using the periodic system the cost of goods purchased is

Quizplus · Accepted Answer

The cost of goods purchased is calculated as Purchases - Purchase Returns - Purchase Discounts + Freight-In. So, $413,000 - $15,600 - $16,500 + $22,100 = $403,000.

Mantle Company's Accounting Records Show the Following at the Year