Question
North Texas Inc. started 2018 with $100,000 of merchandise inventory on hand. During 2018, $600,000 in merchandise was purchased on account with credit terms of
North Texas Inc. started 2018 with $100,000 of merchandise inventory on hand. During 2018, $600,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. North Texas paid freight charges of $8400. Merchandise with an invoice amount of $5000 was returned for credit. Cost of goods sold for the year was $369,000. North Texas uses a perpetual inventory system. Assuming North Texas uses the gross method to record purchases, what is the cost of goods available for sale?
A)$691,400. B)$703,600. C)$691,500. D)$703,400.
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