Question
Northwest Fur Co. started 2016 with $100,000 of merchandise inventory on hand. During 2016, $400,000 in merchandise was purchased on account with credit terms of
Northwest Fur Co. started 2016 with $100,000 of merchandise inventory on hand. During 2016, $400,000 in merchandise was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $3,100 was returned for credit. Cost of goods sold for the year was $374,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale? |
$494,093.
$506,000.
$502,900.
$494,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started