Identify the errors in the following schedule of cost of merchandise sold for the current year ended March 31, 2008:Cost of merchandise sold: Merchandise inventory, March 31, 2008 $135,750Purchases $852,100 Plus: Purchases returns and allowances10,500 Purchases discounts8,00018,500 Gross purchases $870,600 Less transportation in 7,500 Cost of merchandise purchased 863,100Merchandise available for sale $998,850Less merchandise inventory, April 1, 2007 115,150Cost of merchandise sold $883,700

INTRODUCTION Cost of goods sold: Cost of goods sold is the total cost incurred for sale of finished…

Answered: Identify the errors in the following…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

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Identify the errors in the following schedule of cost of merchandise sold for the current year ended March 31, 2008:

Cost of merchandise sold:
Merchandise inventory, March 31, 2008			$135,750
Purchases		$852,100
Plus: Purchases returns and allowances	10,500
Purchases discounts	8,000	18,500
Gross purchases		$870,600
Less transportation in		7,500
Cost of merchandise purchased			863,100
Merchandise available for sale			$998,850
Less merchandise inventory, April 1, 2007			115,150
Cost of merchandise sold			$883,700

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