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14 December, 16:39

The trial balance of Pina Colada Corp. at the end of its fiscal year, August 31, 2022, includes these accounts:

Beginning Inventory $18,930;

Purchases $230,920;

Sales Revenue $205,600;

Freight-In $8,490;

Sales Returns and Allowances $4,650;

Freight-Out $2,100; and Purchase Returns and Allowances $5,030.

The ending inventory is $20,700.

Required:

1. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017.

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Answers (1)
  1. 14 December, 17:32
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    Cost of Goods Sold $237640

    Explanation:

    Pina Colada Corp.

    The Cost OF Goods Sold Statement

    August 31, 2022

    Beginning Inventory $18,930;

    Add Cost of goods Purchased $230,920;

    Add Freight-In $8,490

    Cost of Goods Available for Sale 258340

    Less Ending Inventory $20,700

    Cost of Goods Sold $237640

    By updating merchandising inventory and closing Purchases and Freight in the periodic system transfers the cost of goods sold amount to income summary.
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