The following supplementary records summarize Titus Company’s merchandising activities for year 2011. Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized activities in those T-accounts and compute account balances.
Cost of merchandise sold to customers in sales transactions . . . . . . . . . $186,000
Merchandise inventory, December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . 27,000
Invoice cost of merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . . . 190,500
Shrinkage determined on December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . 700
Cost of transportation-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900
Cost of merchandise returned by customers and restored to inventory . . . 2,200
Purchase discounts received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600
Purchase returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100