The following information was taken from the financial records of Jackpot Corpor

Question

The following information was taken from the financial records of Jackpot Corporation " at its year end of October 31. 2015. The company uses the periodic inventory system Freight-in $ 7,000 Interest expense 1,000 Inventory November 1, 2014 165,000 Inventory October 31, 2015 210,000 Purchase returns and allowances 12,000 Purchases 235,000 Purchase discounts 5,000 Rent expense 4,800 Sales discounts 3,000 Sales returns and allowances 30,000 Salaries expense 112,000 Sales revenue 360,000 Required: Calculate Cost of Goods Sold

Explanation / Answer

Cost Of Goods Sold = Sales - Gross Profit

= 360000 - 145000

= $ 215000

Particulars Amount Particulars Amount To Opening Stock 165000 By Sales 360000 To Freight 7000 By Purchase Return 12000 To Purchases 235000 By Closing Stock 210000 To Sales Return 30000 To Gross Profit (B/F) 145000 Total 582000 Total 582000

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