Solution-Determine the costs of goods sold for the year

Determine the costs of goods sold for the year

Reference no: EM133001366

Question - Cupboard Inc. has just started their business. During the year, the company purchased 1000 units of inventory with purchase discount 9/10, n/30. The unit price is $72. Cupboard returned 10% of its purchase to seller after finding out that they are defective and paid the rest within 10 days of purchase. At the end of the year, a count of the inventory revealed that the business had 200 units of inventory on hand. Cupboard uses the net method and periodic inventory system to account for inventory purchase, and always makes sure its payment is within discount period. Determine the Costs of Goods sold for the year?

a. $57600

b. $45864

c. None of the other alternatives is correct

d. $58968

e. $50400

Reference no: EM133001366

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Determine the costs of goods sold for the year

Reference no: EM133001366

Reference no: EM133001366

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