Cinnamon buns co. (cbc) started 2018 with $52,000 of merchandise on hand. during 2018, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. all discounts were taken. purchases were all made f. o.b. shipping point. cbc paid freight charges of $9,000. merchandise with an invoice amount of $4,000 was returned for credit. cost of goods sold for the year was $316,000. cbc uses a perpetual inventory system. assuming cbc uses the gross method to record purchases, ending inventory would be:

$ 15,480

Explanation:

Data provided:

Beginning merchandise inventory = $ 52000  

merchandise purchased = $ 280000  

Freight charges = $ 9000  

Returned merchandise = 4000  

Discounts provided = 2/10 = 0.2 = 2%

thus,

for purchase merchandise, total discount = (Purchased - returned) × 2% == (280000-4000) × 0.2  = $ 5520

Thus,

the cost of goods available for sale = (Beginning merchandise inventory + merchandise purchased + Freight charges - Returned merchandise - Discounts provided  )

or

the cost of goods available for sale

= $52000 + $280000 + $9000 - $4000 - $5520  ) = $ 331,480  

Also, Cost of goods sold = $ 316000

Hence,  

The ending inventory = cost of goods available for sale - Cost of goods sold or

The ending inventory = $ 331,480 - $ 316000 = $ 15,480

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer; marketing resource management;