For the current fiscal year, Purchases were $245,000, Purchase Returns and Allowances were
$8,600, Purchase Discounts were $2,200 and Freight In was $32,000. If the beginning merchandise inventory was $60,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:
A)$251,200
B)$272,800
C)$266,200
D)$281,200

Question

Quizplus · Accepted Answer

Cost of Goods Sold = Beginning Inventory + Purchases - Purchase Returns and Allowances - Purchase Discounts + Freight In - Ending Inventory= 60,000 + 245,000 - 8,600 - 2,200 + 32,000 - 75,000= 251,200

For the Current Fiscal Year, Purchases Were $245,000, Purchase Returns