Surist, Inc. purchased merchandise for $300,000, received credit for purchase returns of $20,000, availed purchase discounts of $5,000, and paid transportation in of $12,000. Refer to Surist, Inc. If Surist, Inc. had $30,000 in beginning inventory, and sold goods costing $180,000, what is the ending inventory balance?

Question

Business

Bella Williamson

17 August, 21:46

Surist, Inc. purchased merchandise for $300,000, received credit for purchase returns of $20,000, availed purchase discounts of $5,000, and paid transportation in of $12,000. Refer to Surist, Inc. If Surist, Inc. had $30,000 in beginning inventory, and sold goods costing $180,000, what is the ending inventory balance?

+5

Answers (1)

Know the Answer?

Justice Solis · Answer 1

Ending inventory balance ... $497,000

Explanation:

If Surist, Inc. purchased merchandise for $300,000, and received credit for purchase returns of $20,000, and was availed purchase discounts of $5,000, and paid transportation in of $12,000. If Surist, Inc. had $30,000 in beginning inventory, and sold goods costing $180,000, Then the ending inventory balance can be derived as:

Beginning inventory ... $30,000

Add: Purchases of merchandise ... $300,000,

Less: Purchase returns of ... ($20,000)

Less: Purchase discounts of ... ($5,000)

Add: Paid transportation of ... $12,000.

Less: Cost of Goods Sold ... ($180,000)

Ending inventory balance ... $497,000