The following supplementary records summarize Tosca Company’s merchandising activities for year 2013. 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 . . . . . . . . . . . $ 196,000
Merchandise inventory, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . 25,000
Invoice cost of merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . 192,500
Shrinkage determined on December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . 800
Cost of transportation- in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900
Cost of merchandise returned by customers and restored to inventory . . . 2,100
Purchase discounts received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700
Purchase returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000