The following supplementary records summarize Tandy Company’s merchandising activities for year 2011. Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized activities in those T-accounts and compute account balances.
Cost of merchandise sold to customers in sales transactions . . . . . . . . . . . . . . . . . . $296,000
Merchandise inventory, December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,979
Invoice cost of merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303,459
Shrinkage determined on December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790
Cost of transportation-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,034
Cost of merchandise returned by customers and restored to inventory . . . . . . . . . . . . 2,700
Purchase discounts received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,427
Purchase returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900