Question
Cinnamon Buns Company (CBC) started 2024 with $52,300 of inventory on hand. During 2024, $282,000 in inventory was purchased on account with credit terms of
Cinnamon Buns Company (CBC) started 2024 with $52,300 of inventory on hand. During 2024, $282,000 in inventory was purchased on account with credit terms of 3/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,800. Inventory with an invoice amount of $3,400 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.
What is cost of goods available for sale, assuming CBC uses the gross method?
Multiple Choice
$344,100
$332,342
$312,742
$340,700
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Frank Woods Business Accounting An Introduction To Financial Accounting
Authors: Alan Sangster, Lewis Gordon, Frank Wood
15th Edition
1292365439, 9781292365435
