Question

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.

Answer 1

Answer:

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