The trial balance of Tamarisk, Inc. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $24,350; Purchases $203,160; Sales Revenue $182,200; Freight-In $9,080; Sales Returns and Allowances $4,880; Freight-Out $1,860; and Purchase Returns and Allowances $8,250. The ending inventory is $24,300.

Question

Rebekah Huffman

Business

24 March, 07:47

The trial balance of Tamarisk, Inc. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $24,350; Purchases $203,160; Sales Revenue $182,200; Freight-In $9,080; Sales Returns and Allowances $4,880; Freight-Out $1,860; and Purchase Returns and Allowances $8,250. The ending inventory is $24,300.

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Alfonso Kirby · Answer 1

Solution and Explanation:

Cost of goods sold section:

Beginning inventory, September 1, 2013 24350

Purchase 203160

Less: Purchase return and allowance - 8250

Net purchase 194910

Add: Freight in 9080

Cost of goods purchased 203990

Cost of goods available for sale 228340

Less: Inventory august 31,2014 - 24300

Cost of goods sold 204040

Note: Net purchases are calculated after deducting purchase return and allowances from the purchase. For calculating the cost of goods purchased, freight in is to be added.