From the following accounts, prepare a cost of goods sold section in proper form: Merchandise Inventory, 12/31/1X,

Question:

From the following accounts, prepare a cost of goods sold section in proper form: Merchandise Inventory, 12/31/1X, $9,040; Purchases Discount, $860; Merchandise Inventory, 12/01/1X, $4,400; Purchases, $60,000; Purchases Returns and Allowances, $1,040; Freight-In, $330.