Question
Cinnamon Buns Company(CBC) started 2024 with $56,000 of inventory on hand.During 2024,$288,000 in inventory was purchased on account with credit terms of 2/10n/30:All discounts were
Cinnamon Buns Company(CBC) started 2024 with $56,000 of inventory on hand.During 2024,$288,000 in inventory was purchased on account with credit terms of 2/10n/30:All discounts were taken.Purchases were all made f.o.b.shipping point. CBC paid freight charges of $13,000. Inventory with an invoice amount of $5,600 was returned for credit.Cost of goods sold for the year was $324,000.CBC uses a perpetual inventory system
Assume instead that () freight costs were paid by the vendor,(b)no discounts were tkken,and(c) the inventory on hand at the beginning of 2024 was determined by a physical count that failed to realize that $14,000 of inventory was being held on consignment for Frosting RUs Incorporated.What is cost of goods available for sale,assuming CBC uses the gross method to record purchase discounts?
Multiple Choice
$324,400
$327,880
$337,400
$351400
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