Business: Cinnamon Buns Co. (CBC) started 2018 with $52,600 of merchandise on hand. During 2018, $297,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,400. Merchandise with an invoice amount of $2,100 was returned for credit. Cost of goods sold for the year was $309,000. CBC uses a perpetual inventory system. Assuming CBC uses the gross method to record purchases, ending inventory

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Cinnamon Buns Co. (CBC) started 2018 with $52,600 - id2018526006937190, bestballer7095

meccadm

29.01.2022

$39,053

Explanation:

The computation of the ending inventory is shown below:

Beginning inventory$52,600

Add: Inventory purchased$297,000

Add: Freight in$9,400

Less: Merchandise returned-$2,100

Less: Discounts-$8,847($297,000 - $2,100) × 3%

Less: Cost of goods sold-$309,000

Ending inventory$39,053

Hence, the ending inventory using the gross method is $39,053

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