Question

Sampson Company's accounting records show the following at the year ending on December 31, 2010: Purchase Discounts $ 5,600 Freight - in 7,800 Purchases 200,010 Beginning Inventory 23,500 Ending Inventory 28,800 Purchase Returns 6,400 Using the periodic system, the cost of goods purchased is A. $180,210. B. $204,210. C. $208,610. D. $195,810.

Answer 1

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Purchase Discounts $ 5,600 Freight - in 7,800 Purchases 200,010 Beginning Inventory 23,500 Ending Inventory 28,800 Purchase Returns 6,400 Using the periodic system

Purchased= 200,010 + 7,800 - 5,600 - 6,400= $195,810