Business, 19.12.2019 02:31 marioh91

Calculation of cost of goods sold: periodic inventory system with sales returns and allowances

the following amounts are known for adams gift shop:

beginning merchandise inventory $27,000
ending merchandise inventory 22,000
purchases 78,000
purchases returns and allowances 3,900
purchases discounts 6,000
freight-in 350

assume the business makes estimates for sales returns and allowances at year-end. the balances for estimated returns inventory are shown. beginning estimated returns inventory $2,000 ending estimated returns inventory 1,600 prepare the cost of goods sold section of the income statement.

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Calculation of cost of goods sold: periodic inventory system with sales returns and allowances

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