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29 April, 02:05

The trial balance of Sheridan Company at the end of its fiscal year, August 31, 2017, includes these accounts:

Beginning Inventory $23,570;

Purchases $224,020;

Sales Revenue $185,200;

Freight-In $9,770;

Sales Returns and Allowances $4,400;

Freight-Out $2,330;

Purchase Returns and Allowances $5,460.

The ending inventory is $22,700.

Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017.

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  1. 29 April, 05:00
    0
    The answer is $229,200

    Explanation:

    Cost of sales equals:

    Beginning inventory plus purchases minus ending inventory.

    Beginning inventory is $23,570

    Purchases (net Purchase) is

    Purchases $224,020

    Add: Freight-In. $9,770

    Minus: Purchase Returns. and Allowances. ($5,460)

    Net Purchase:. $228,330

    ending inventory is $22,700.

    Therefore, cost of goods sold is:

    $23,570 + $228,330 - $22,700

    =$229,200
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