Identify the errors in the following schedule of cost of merchandise sold for the current year ended March 31, 2008:
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Cost of merchandise sold: |
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Merchandise inventory, March 31, 2008 |
$135,750 |
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Purchases |
$852,100 |
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Plus: Purchases returns and allowances |
10,500 |
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Purchases discounts |
8,000 |
18,500 |
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Gross purchases |
$870,600 |
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Less transportation in |
7,500 |
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Cost of merchandise purchased |
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863,100 |
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Merchandise available for sale |
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$998,850 |
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Less merchandise inventory, April 1, 2007 |
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|
115,150 |
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Cost of merchandise sold |
$883,700 |
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