CANVAS UCLA Canvas Login e The Income Staten. Login Weygandt, Accounting Princip

Question

CANVAS UCLA Canvas Login e The Income Staten. Login Weygandt, Accounting Principles, 13e Help I S CALC TIMER ESOURCEs Multiple Choice Question 148 The following information is available for Marigold Company: Sales Revenue $390600 Ending Inventory 36600 ? Freight-In Purchase Returns and Allowances $29200 15200 45800 269100 Beginning Inventory Marigold's cost of goods sold under a periodic inventory system is O $263100. O$284300. O $292300. o $344800. Click If you would like to Show Work for this question: Open Show Work s by Study Question Attempts: O of 1 us

Explanation / Answer

Ans-1)

Beginning Inventory = 45,800

Add) Purchases = 269,100

Add) Freight-In = 29,200

Less) Returns and allowances = 15,200

Less) Ending Inventory = 36,600

Cost of Goods Sold = 292,300

Therefore option C is correct

Ans-2)

As the goods have been purchased on 3 August on 2/10 net 45 terms (meaning the customer is eligible for 2% discount on payables if payment is made within 10 days) and Vaughn Company has made full payment to the suppliers on 10 August (i.e. in 7 days) so they are eligible for 2% discount on the payables and the journal entry will be:

Debit Accounts Payable   8,900

Credit Purchase Returns and Allowances   178

Credit Cash   8,722

Therefore option C is correct

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