Based on the following data, determine the cost of merchandise sold for November:
Increase in estimated returns inventory $ 14,500
Merchandise inventory, November 1 28,000
Merchandise inventory, November 30 31,500
Purchases 475,000
Purchases returns and allowances 15,000
Purchases discounts 9,000
Freight in 7,000
Answer:
Cost of merchandise sold:
Merchandise inventory, November 1$ 28,000
Cost of merchandise purchased:
Purchases$475,000
Purchases returns and allowances (15,000)
Purchases discounts(9,000)
Net purchases$451,000
Freight in7,000
Total cost of merchandise purchased 458,000
Merchandise available for sale$486,000
Merchandise inventory, November 30(31,500)
Cost of merchandise before estimated returns $454,500
Increase in estimated returns inventory(14,500)
Cost of merchandise sold$440,000