Northwest Fur Company started 2024 with $102,000 of inventory on hand. During 2024, $520,000 in inventory was purchased on account with credit terms of 315/315 , n45/�45 . All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,100. Inventory with an invoice amount of $4,100 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
Northwest Fur Company started 2024 with $102,000 of inventory on hand. During 2024, $520,000 in inventory was purchased on account with credit terms of 315/315 , n45/�45 . All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,100. Inventory with an invoice amount of $4,100 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
Related questions
Question
100%
Northwest Fur Company started 2024 with $102,000 of inventory on hand. During 2024, $520,000 in inventory was purchased on account with credit terms of 315/315 , n45/�45 . All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,100. Inventory with an invoice amount of $4,100 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system.
Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College