Ask Question
12 January, 17:07

Exercise 8-3 (Algo) Determining cost of goods sold [LO8-1] The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory, 7/1/2020 33,500 Sales revenue 395,000 Sales returns 13,500 Purchases 255,000 Purchase discounts 7,500 Purchase returns 11,500 Freight-in 20,000 In addition, you determine that the June 30, 2021, inventory balance is $41,500. Required: Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2021.

+4
Answers (1)
  1. 12 January, 18:54
    0
    Cost of Goods Sold $ 248,000

    Explanation:

    Askew Company

    The Cost of Goods Sold Statement

    for the year ending June 30, 2021.

    Inventory, 7/1/2020 33,500

    Add Purchases 255,000

    Less Purchase returns 11,500

    Less Purchase Discounts 7,500

    Net Purchases 269,500

    Add Freight In $ 20,000

    Cost of goods Purchased 289,500

    Less Ending Inventory balance $41,500.

    Cost of Goods Sold $ 248,000

    Working

    Askew Company

    Account Debit Credit

    Inventory, 7/1/2020 33,500

    Sales revenue 395,000

    Sales returns 13,500

    Purchases 255,000

    Purchase discounts 7,500

    Purchase returns 11,500

    Freight-in 20,000

    Inventory balance 6/30/2021 $41,500.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Exercise 8-3 (Algo) Determining cost of goods sold [LO8-1] The June 30, 2021, year-end trial balance for Askew company contained the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers