Exercise 517Calculate the figures left blanks voice cost of

Exercise 5-17.Calculate the figures left blanks. voice cost of merchandise purchases urchase discounts received $44,0 $21,000 $16,250 Purch. returns and allow. Received ost of transportation-in et cost of merchandise purchases 1,750 Merchandise inventory (beginning $ 4,500 3,500 et cost of merchandise purchases 19,75 Merchandise inventory (ending) Cost of goods sold $20,8 $17,065

Solution

Answer:

`

A

B

C

Invoice cost to Merchandise Purchase

44000

21000

16250

Purchase discount received

-2000

-2250

-325

Purchased return and allowance received

-1500

-750

-550

Cost of transport in.

4200

1750

2000

Net cost of merchandise purchase

44700

19750

17375

merchandise Inventory (beginning)

4500

4800

3500

Net cost of merchandise purchase

44700

19750

17375

merchandise Inventory (ending)

-2200

-3750

-3810

Cost of goods sold

47000

20800

17065

Working notes for the above answer:

FOR A

Net cost of merchandise purchase =$44700

So Cost of transport in. =44700-44000+2000+1500 =4200

Cost of transport in =4200

FOR B

merchandise Inventory (beginning) =20800-19750+3750 =4800

Net cost of merchandise purchase =$19750

So purchase discount received =21000+1750-750-19750=2250

purchase discount received =$2250

FOR C

Net cost of merchandise purchase =16250-325-550+2000=$17,375

merchandise Inventory (ending)=17375+3500-17065=3810

`	A	B	C
Invoice cost to Merchandise Purchase	44000	21000	16250
Purchase discount received	-2000	-2250	-325
Purchased return and allowance received	-1500	-750	-550
Cost of transport in.	4200	1750	2000
Net cost of merchandise purchase	44700	19750	17375
merchandise Inventory (beginning)	4500	4800	3500
Net cost of merchandise purchase	44700	19750	17375
merchandise Inventory (ending)	-2200	-3750	-3810
Cost of goods sold	47000	20800	17065