Based on the following data, determine the cost of merchandise sold for November: Increase in estimated returns inventory $ 14,500

Based on the following data, determine the cost of merchandise sold for November:

Increase in estimated returns inventory $   14,500

Merchandise inventory, November 1 28,000

Merchandise inventory, November 30 31,500

Purchases 475,000

Purchases returns and allowances 15,000

Purchases discounts 9,000

Freight in 7,000

Answer:

Cost of merchandise sold:

Merchandise inventory, November 1$ 28,000

Cost of merchandise purchased:

Purchases$475,000

Purchases returns and allowances (15,000)

Purchases discounts(9,000)

Net purchases$451,000

Freight in7,000

Total cost of merchandise purchased 458,000

Merchandise available for sale$486,000

Merchandise inventory, November 30(31,500)

Cost of merchandise before estimated returns $454,500

Increase in estimated returns inventory(14,500)

Cost of merchandise sold$440,000