EX 5-36 Cost of merchandise sold
Identify the errors in the following schedule of the cost of merchandise sold for the current year ended May 31, 2014:
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Cost of merchandise sold: |
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Merchandise inventory, May 31, 2014 |
$105,000 |
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Purchases |
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Plus: Purchases returns and allowances |
$55,000 |
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Purchases discounts |
30,000 |
85,000 |
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Gross purchases |
$1,195,000 |
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Less freight in |
22,000 |
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Cost of merchandise purchased |
1,173,000 |
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Merchandise available for sale |
$1,278,000 |
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Less merchandise inventory, June 1, 2013 |
91,300 |
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Cost of merchandise sold |
$1,186,700 |