5 Based upon the following data dermine the cost of merchand

5. Based upon the following data, dermine the cost of merchandise sold for Ma (13 percent) Merchandise Inventory, May1 $131,000 1,978,000 Purchases Returns and Allowances 35,500 Merchandise Inventory, May 31 145000 Purchases 52.000 21.300 Discounts In

Solution

Net purchases = Purchases-Purchases return-Purchases discount = 1978000-35500-52000= 1890500 Cost of merchandise sold = 1890500+21300+131000-145000= 1897800