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Assuming the periodic inventory method is used for the current period, the following data was taken from the ledger: Purchases $55 000 Purchases Returns and Allowances $950 Discount Received $1 100 Freight-in $800 Beginning inventory was $12 000 and ending inventory was $15 000. What was cost of goods purchased? Group of answer choices $55 000 $54 050 $54 850 $52 950

Question

Assuming the periodic inventory method is used for the current period, the following data was taken from the ledger:

Purchases $55 000

Purchases Returns and Allowances $950

Discount Received $1 100

Freight-in $800

Beginning inventory was 12000andendinginventorywas12 000 and ending inventory was 15 000. What was cost of goods purchased?

Group of answer choices

$55 000

$54 050

$54 850

$52 950

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Solution

The cost of goods purchased can be calculated as follows:

  1. Start with the total amount of purchases, which is $55,000.

  2. Subtract the Purchases Returns and Allowances, which is 950.Thisgives950. This gives 55,000 - 950=950 = 54,050.

  3. Subtract the Discount Received, which is 1,100.Thisgives1,100. This gives 54,050 - 1,100=1,100 = 52,950.

  4. Add the Freight-in, which is 800.Thisgives800. This gives 52,950 + 800=800 = 53,750.

So, the cost of goods purchased is $53,750.

This problem has been solved

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