A Firm Had Merchandise Inventory of $30,000 on January 1

question 20

Short Answer

A firm had merchandise inventory of $30,000 on January 1, 2013, and had purchases of $45,000, freight in of $600, purchases returns and allowances of $2,300, and purchases discounts of $1,000 during 2013. The firm had merchandise inventory of $27,000 on December 31, 2013.
1. What net delivered cost of purchases was shown for the year ended December 31, 2013, on the classified income statement?
2. What was the cost of goods sold?

---

Definitions:

Advent of Pottery

The emergence or beginning of pottery-making in human history, marking a significant technological and cultural development.

Craft Specialization

The practice of focusing on the production of specific types of goods or mastering particular skills or techniques, often within a trade or profession.

Increased Nomadism

The growing tendency or practice among populations to move from one place to another rather than settling permanently in one location.

Birth Spacing Interval

The period of time between the birth of one child and the conception of the next child, considered important for the health of both mother and child.