A company has the following transactions during March:
Record all transactions, including the month-end adjustment to cost of goods sold, assuming the company uses a periodic inventory system and has no beginning inventory.

Question

A company has the following transactions during March:  
Record all transactions, including the month-end adjustment to cost of goods sold, assuming the company uses a periodic inventory system and has no beginning inventory.

Quizplus · Accepted Answer

Purchase discount = ($3,500 - $500) $\times$ 2% = $60.
Cost of good sold = $3,500 (purchase) + $200 (freight-in) - $500 (return) - $60 (discount) = $3,140.

A Company Has the Following Transactions During March