Based on the following, determine the cost of goods sold under the periodic meth

Question

Based on the following, determine the cost of goods sold under the periodic method. Purchases returns and allowances $ 12,256 Freight in $5,236 Purchases $236,233 Beginning Merchandise Inventory $22,369 Purchases discounts $5,368 Ending Merchandise Inventory $19,998 journalize the following transactions from both the buyers and sellers perspective. On 3/12 Smith Co. purchased from Allen Co. $36,200 worth of marchadise, terms 2/10 n30, FOB shipping point, seller paid $380 for shipping. The cost of merchadise was $21, 200. On 3/16 Smith Co. returned $1,500 worth of merchadise to Allen Co. who paid $700 for the merchadise. On 3/20 Smith paid what was owed.(Discounts are recorded at time payment) What is Allen Co.'s gross profit for this sale?__________

Explanation / Answer

Answer:1

Particulars Amount ($) Beginning merchandise inventory 22369 Purchases 236233 Less: Purchase return and allowance 12256 Purchase discount 5368 Net Purchase 218609 Add: Freight 5236 Less: Ending merchandise inventory 19998 COGS 226216

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