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The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for sale?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

The following information is available for HRH Company for 2019:

Freight-in P 30,000

Purchase returns 75,000

Selling expenses 150,000

Ending inventory 260,000

The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for sale?

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