Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has $46,000 in inventory. During the quarter the company purchases $10,300 of new inventory from a vendor, returned $800 of inventory to the vendor, and took advantage of discounts from the vendor of $360. At the end of the quarter the balance in inventory is $34,500. What is the cost of goods sold?

Respuesta :

Explanation:

Net purchases= Gross purchases- Returned inventory- Discount on purchases

                       = $10,300- $800- $360= $9,140

Ending inventory= Beginning inventory+ Net purchases- Cost of goods sold

Cost of goods sold= Beginning inventory+ Net purchases- Ending inventory

                               = $46,000+ $9,140- $34,500= $20,640