Question

At the beginning of the year, TRK started with $15,000 in beginning inventory. Throughout the period, TRK purchased $40,000 worth of inventory, negotiated $2,000 of purchase allowances, returned $500 of inventory, received a $5,700 purchase discount for paying early and paid $300 in shipping charges for their inventory. Given this information, determine goods available for sale.

Answer 1

Answer:

$47,100

Explanation:

The cost of goods available for sale is the sum of the opening balance and the net purchases during the period.

The net purchases is the difference between the total purchases and the allowances and discounts and returns.

Hence,

Cost of goods available for sale

= $15,000 + $40,000 - $2,000 - $500 - $5,700 + $300

= $47,100