Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $540,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paíd freight.charges of $8,500. Merchandise with an invoice amount of $3,400 was returned for credit. Cost of goods sold for the year was $378,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $540,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paíd freight.charges of $8,500. Merchandise with an invoice amount of $3,400 was returned for credit. Cost of goods sold for the year was $378,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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$650,100.
$639,368.
$647,300.
$639,300.
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Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $540,000 in merchandise was purchased on
account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges
of $8,500. Merchandise with an invoice amount of $3,400 was returned for credit. Cost of goods sold for the year was $378,000. Northwest
uses a perpetual inventory system.
Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
Multiple Choice
$650,100.
$639,368.
< Prev
2 of 15
Next >
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