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20 March, 03:06

Blossom Company's accounting records show the following for the year ending on December 31, 2017.

Purchase Discounts $ 11000

Freight-in 15300

Purchases 689020

Beginning Inventory 55000

Ending Inventory 45600

Purchase Returns and Allowances 15100

Using the periodic system, the cost of goods purchased is

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  1. 20 March, 04:24
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    Answer: $678,220

    Explanation:

    Given that,

    Purchase Discounts = $ 11,000

    Freight-in = $15,300

    Purchases = $689,020

    Beginning Inventory = $55,000

    Ending Inventory = $45,600

    Purchase Returns and Allowances = $15,100

    Cost of goods purchased:

    = Purchases + Freight in - Purchase discounts - Purchase returns and allowances

    = $689,020 + $15,300 - $ 11,000 - $15,100

    = $678,220
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