On December 31, 2016, MOON was depressed upon seeing the following accounts in his ledger. In order for him to easily know the results of his operations, he hired SUN to assist him. The following data were taken from the incomplete accounting records maintained by MOON:

ACCOUNT BALANCESJANUARY 1DECEMBER 31

Cash6,7904,560

Accounts Receivable8,6105,940

Merchandise Inventory10,5809,720

Prepaid Expenses750600

Equipment, net9,5508,500

Accounts Payable6,9907,330

Loans Payable4,0002,750

Accrued Expenses450560

Transactions per CASHBOOK during 2016:

RECEIPTS:

From Customers67,950

From Bank Loan4,000

Other Income800

DISBURSEMENTS:

To Trade Creditors51,860

To Bank Loan5,250

For various expenses8,140

Purchase of Equipment2,000

To Owner of Drawings2,000

Additional Information:

Purchase returns amounted to $1,530. Goods received from suppliers on December 20, 2016, $850, was not invoiced to and recorded by the shop until January 2017.

Sales returns during the year were $2,500. Bad debts written off directly against accounts receivable were $1,080.

The only change in the equipment was the purchase of a new computer on June 30, 2016. Depreciation charges are credited to the fixed asset account from the month following the purchase.

REQUIRED:

Solve for the COST OF SALES