The Lothridge Wholesale Beverage Company purchases soft drinks from producers and then sells them to retailers. The company began the year with inventory of $$120,000$ on hand. During the year, additional inventory transactions include:

Purchases of inventory on account totaled                         $$620,000,$      with terms $2/10,$ n$/30$

Freight charges paid by Lothridge were                               $$16,000$

Inventory with a cost of $$20,000$ was returned to suppliers for credit.

All purchases on account were paid within the discount period

Sales on account totaled $$830,000$

Inventory remaining on hand at the end of the year totaled $$174,000$

The above transactions are recorded in summary form according to the periodic inventory systems using the gross method. What is the cost of goods available for sale for the year?

Answer rating: 100% (QA)

1 Beginning Inventory The year started with inventory on hand worth 120000 2 Purchases on Account Th... View the full answer