Cinnamon Buns Co. (CBC) started 2021 with $52,900 of merchandise on hand. During 2021, $281,000 in merchandise
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Question:
Cinnamon Buns Co. (CBC) started 2021 with $52,900 of merchandise on hand. During 2021, $281,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,100. Merchandise with an invoice amount of $2,100 was returned for credit. Cost of goods sold for the year was $303,000. CBC uses a perpetual inventory system.
What is cost of goods available for sale, assuming CBC uses the gross method?
Multiple Choice
$343,000.
$332,533.
$340,900.
$314,333.
Related Book For
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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