Swanson, Inc. uses a periodic inventory system. From the following details, calculate the cost of goods sold
Beginning merchandise inventory $2,000
Ending merchandise inventory 2,300
Purchases 22,000
Purchase Discounts 700
Purchase Returns and Allowances 1,500
Freight In 4,200
A) $24,200
B) $19,800
C) $23,700
D) $26,000
C .Calculation of Cost of Goods Sold:
Beginning Merchandise Inventory $2,000
Purchases $22,000
Less: Purchase Returns and Allowances 1,500
Less: Purchase Discounts 700
Net Purchases $19,800
Plus: Freight In: 4,200
Net Cost of Purchases 24,000
Cost of Goods Available for Sale $26,000
Less: Ending Merchandise Inventory 2,300
Cost of Goods Sold $23,700
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