Cost of Merchandise Sold

Cost of merchandise sold:
Merchandise inventory, May 31, 2018			$105,000
Cost of merchandise purchased:
Purchases	$1,110,000
Purchases returns and allowances	55,000
Purchases discounts	30,000
Freight in	(22,000)
Total cost of merchandise purchased			1,173,000
Inventory available for sale			$1,278,000
Merchandise inventory, June 1, 2017			91,300
Cost of merchandise sold before estimated returns			$1,186,700
Increase in estimated returns inventory			43,300
Cost of merchandise sold			$1,230,000

The schedule of the cost of merchandise sold for the current year ended May 31, 2016, above contains errors. Prepare a corrected cost of merchandise sold section in the spaces provided below.

Answer rating: 100% (QA)

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