The trial balance of Sheridan Company at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $24,230; Purchases $200,300; Sales Revenue $184,800; Freight-In $8,530; Sales Returns and Allowances $3,610; Freight-Out $3,940; and Purchase Returns and Allowances $8,210. The ending inventory is $21,700. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022.

Question

Leanna Snow

Business

12 November, 09:02

The trial balance of Sheridan Company at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $24,230; Purchases $200,300; Sales Revenue $184,800; Freight-In $8,530; Sales Returns and Allowances $3,610; Freight-Out $3,940; and Purchase Returns and Allowances $8,210. The ending inventory is $21,700. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022.

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Woods · Answer 1

Cost of good sold is $203,150.

Explanation:

Sheridan Company cost of goods sold section (periodic system) for the year ending August 31, 2022

Details $ $

Beginning Inventory 24,230

Purchases 200,300

Freight-In 8,530

Purchase Returns and Allowances (8,210)

Net purchases 200,620

Cost of goods available for sales 224,850

Ending inventory (21,700)

Cost of good sold 203,150