Question
Northwest Fur Co. started 2013 with $110,000 of merchandise inventory on hand. During 2013, $590,000 in merchandise was purchased on account with credit terms of
Northwest Fur Co. started 2013 with $110,000 of merchandise inventory on hand. During 2013, $590,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,100. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $368,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale? |
a) | $704,100. |
b) | $697,800. |
c) | $698,240. |
d) | $698,200. |
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