From the Following Details of a Merchandiser, Calculate the Cost

question 103

Multiple Choice

From the following details of a merchandiser, calculate the Cost of Goods Sold. (Assume the merchandiser uses the periodic inventory system.) $$\begin{array} { | l | r | } \hline \text { Net Sales } & \$ 198,000 \\\hline \text { Purchases } & 92,000 \\\hline \text { Purchases Returns and Allowances } & 1,800 \\\hline \text { Purchases Discounts } & 1,250 \\\hline \text { Freight In } & 1,590 \\\hline \text { Beginning Merchandise Inventory } & 63,000 \\\hline \text { Ending Merchandise Inventory } & 37,000 \\\hline\end{array}$$

• A) $116,540
• B) $81,460
• C) $114,950
• D) $53,540

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Definitions:

Days' Sales Uncollected

A financial metric reflecting the average number of days it takes for a company to collect payment after making a sale.