Brown Industries has a December 31st year-end. On January 1, 20x2, Brown had $98,000 of merchandise inventory on hand. During 20x2, Brown purchased $520,000 of inventory on account with credit terms of 3/15, n/45. Brown took all available purchase discounts. Purchases were all made fo.b. shipping point and Brown paid freight charges of $9,100 on inventory purchased in 20x2. Merchandise with an invoice amount of $4,700 was returned for credit. Cost of goods sold for the year was $362,000. Brown uses a perpetual inventory system. (Hint: it will be helpful to remember that purchase discounts are not allowed on returned merchandise.) What is Brown's ending inventory on December 31, 20x2 assuming Brown uses the gross method to record purchases? Multiple Choice $265,100. $244,881. $260,400. $244,941.

Brown Industries has a December 31st year-end. On January 1, 20x2, Brown had $98,000 of merchandise inventory on hand. During 20x2, Brown purchased $520,000 of inventory on account with credit terms of 3/15, n/45. Brown took all available purchase discounts. Purchases were all made fo.b. shipping point and Brown paid freight charges of $9,100 on inventory purchased in 20x2. Merchandise with an invoice amount of $4,700 was returned for credit. Cost of goods sold for the year was $362,000. Brown uses a perpetual inventory system. (Hint: it will be helpful to remember that purchase discounts are not allowed on returned merchandise.) What is Brown's ending inventory on December 31, 20x2 assuming Brown uses the gross method to record purchases? Multiple Choice $265,100. $244,881. $260,400. $244,941.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
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