=+E4-5 Cost ofmerchandise sold Obj 2

/ Correct cost of merchandise sold,

$820,500 Identify the errors in the following schedule of cost of merchandise sold for the current year ended March 31, 2008:

Cost of merchandise sold:

Merchandise inventory, March 31, 2008 $135,750 Purchases $852,100 Plus: Purchases returns and allowances $10,500 Purchases discounts 8,000 18,500 Gross purchases $870,600 Less transportation in 7,500 Cost of merchandise purchased 863 100 Merchandise available for sale $998,850 Less merchandise inventory, April 1, 2007 115 150 Cost of merchandise sold $883,700 Accountingfor Merchandising Businesses 155