A company begins the year with inventory of $50,000 and ends the year with inventory of $55,000. During the year, the following amounts are recorded: $$\begin{array} { l r }
\text { Purchases } & \$ 210,000 \
\text { Purchase returns } & 25,000 \
\text { Purchase discounts } & 15,000 \
\text { Freight-in } & 40,000
\end{array}$$ Calculate cost of goods sold for the year.

Question

A company begins the year with inventory of $50,000 and ends the year with inventory of $55,000. During the year, the following amounts are recorded: $$\begin{array} { l r } 
\text { Purchases } & \$ 210,000 \
\text { Purchase returns } & 25,000 \
\text { Purchase discounts } & 15,000 \
\text { Freight-in } & 40,000
\end{array}$$ Calculate cost of goods sold for the year.

Quizplus · Accepted Answer

The Answer of A company begins the year with inventory of $50,000 and ends the year with inventory of $55,000. During the year, the following amounts are recorded: $$\begin{array} { l r } 
\text { Purchases } & \$ 210,000 \
\text { Purchase returns } & 25,000 \
\text { Purchase discounts } & 15,000 \
\text { Freight-in } & 40,000
\end{array}$$ Calculate cost of goods sold for the year.

A Company Begins the Year with Inventory of $50,000 and Ends