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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, 2018 above contains errors. Prepare a corrected cost of merchandise sold section in the spaces provided below. Schedule of the Cost of Merchandise Sold Year Ended May 31, 2018 Cost of merchandise sold: Merchandise inventory, June 1, 2017v Cost of merchandise purchased: Purchases v Less: Purchases returns and allowances v Less: Purchases discounts Net purchases Add freight in Cost of merchandise purchased v Merchandise available for sale y Less merchandise inventory, May 31, 2018 V Cost of merchandise sold before estimated returns Increase in estimated returns inventory v 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, 2018 above contains errors. Prepare a corrected cost of merchandise sold section in the spaces provided below. Schedule of the Cost of Merchandise Sold Year Ended May 31, 2018 Cost of merchandise sold: Merchandise inventory, June 1, 2017v Cost of merchandise purchased: Purchases v Less: Purchases returns and allowances v Less: Purchases discounts Net purchases Add freight in Cost of merchandise purchased v Merchandise available for sale y Less merchandise inventory, May 31, 2018 V Cost of merchandise sold before estimated returns Increase in estimated returns inventory v Cost of merchandise sold

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 34E
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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, 2018 above contains errors. Prepare a corrected cost of merchandise sold section in the spaces provided below.
Transcribed Image Text: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, 2018 above contains errors. Prepare a corrected cost of merchandise sold section in the spaces provided below.
Schedule of the Cost of Merchandise Sold Year Ended May 31, 2018 Cost of merchandise sold: Merchandise inventory, June 1, 2017v Cost of merchandise purchased: Purchases v Less: Purchases returns and allowances v Less: Purchases discounts Net purchases Add freight in Cost of merchandise purchased v Merchandise available for sale y Less merchandise inventory, May 31, 2018 V Cost of merchandise sold before estimated returns Increase in estimated returns inventory v Cost of merchandise sold
Transcribed Image Text:Schedule of the Cost of Merchandise Sold Year Ended May 31, 2018 Cost of merchandise sold: Merchandise inventory, June 1, 2017v Cost of merchandise purchased: Purchases v Less: Purchases returns and allowances v Less: Purchases discounts Net purchases Add freight in Cost of merchandise purchased v Merchandise available for sale y Less merchandise inventory, May 31, 2018 V Cost of merchandise sold before estimated returns Increase in estimated returns inventory v Cost of merchandise sold
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