Calculate the cost of sales for a retailer using the periodic inventory system from the following details. $$\begin{array} { | l | l | }
\hline \text { Purchases } & \$ 520,000 \
\hline \text { Beginning inventory } & 180,000 \
\hline \text { Purchase returns and allowances } & 50,000 \
\hline \text { Purchase discounts } & 12,000 \
\hline \text { Freight in } & 18,000 \
\hline \text { Ending inventory } & 180,000 \
\hline
\end{array}$$
A)$520,000
B)$476,000
C)$836,000
D)$494,000

Question

Calculate the cost of sales for a retailer using the periodic inventory system from the following details. $$\begin{array} { | l | l | } 
\hline \text { Purchases } & \$ 520,000 \
\hline \text { Beginning inventory } & 180,000 \
\hline \text { Purchase returns and allowances } & 50,000 \
\hline \text { Purchase discounts } & 12,000 \
\hline \text { Freight in } & 18,000 \
\hline \text { Ending inventory } & 180,000 \
\hline
\end{array}$$
A)$520,000
B)$476,000
C)$836,000
D)$494,000

Quizplus · Accepted Answer

Cost of sales = Beginning inventory + Purchases - Purchase returns and allowances - Purchase discounts + Freight in - Ending inventory= 180,000 + 520,000 - 50,000 - 12,000 + 18,000 - 180,000= $476,000

Calculate the Cost of Sales for a Retailer Using the Periodic