From the following information calculate the cost of merchan

From the following information, calculate the cost of merchandise sold:

Beginning inventory $ 2,500

purchases $3,000

purchase returns $400

purchase discounts $100

Ending inventory $2,100

Solution

Here we have the formula that

inventary purchase = (ending invertory - beginning inventory) + cost of good sold

Now here purchase inventary = tota lpurchase - purchase return - purchase discount.

so here purchase invertary = $3000 - $400 - $ 100 = $ 2500

So by above formula, 2500 = (2500 - 2100 )+ cost of good sold

or 2500 = 400 + cost of good sold

or cost of good sold = 2500 - 400 = 2100

So last answer is $ 2100.