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Student Home WileyPLUS WileyPLUS: MyWileyPLUS I Help I Cont Kimmel, Accounting, 6e FINANCIAL & MANAGERIAL ( ice Assignment Gradebook ORION Downloadable eTextbook ent 37 AM / Remaining: 24 min. CALCULATOR FULL SCREEN PRINTER VERSION ·BA Question 16 Sampson Company's accounting records show the following for the year ending on December 31, 2017 Purchase Discounts Freight-in 11200 15600 700020 47000 57600 12800 Beginning Inventory Ending Inventory Purchase Returns and Allowances Using the periodic system, the cost of goods purchased is $691620 $717220. O $708420 $660420 Click if you would like to Show Work for this question: 00e n Show Work acy Polisy 1 2000-2018 2ohn Wiley &Sons.Ins.; All Rights Reserved. A Division of John Wiley & Sons.Ins VersioExplanation / Answer
Cost of goods purchases = Purchases - Purchase Returns and Allowance - Purchase Discount + Freight-in
Purchases
$ 700,020
Less: Purchase Returns and Allowance
$ 12,800
Less: Purchase Discount
$ 11,200
Net Purchases
$ 676,020
Add: Freight-in
$ 15,600
Cost of goods purchase
$ 691,620
Hence option “$ 691,620” is correct answer.
Purchases
$ 700,020
Less: Purchase Returns and Allowance
$ 12,800
Less: Purchase Discount
$ 11,200
Net Purchases
$ 676,020
Add: Freight-in
$ 15,600
Cost of goods purchase
$ 691,620