Question

what do I add and subtract?

te.com/courses/9534/modules/item/234127 X Your answer is incorrect Pronghorn Lake Corporation's accounting records show the following at year-end December 31, 2017 Purchase Discounts $6,320 Beginning Inventory $32,910 Freight-In 9,790 Ending Inventory 28,930 Freight-Out 11.490 Purchase Returns and Allowances 5,210 Purchases 163.770 Assuming that Pronghorn Lake Corporation uses the periodic system.compute cost of poods purchased and cost of goods sold Cost of goods purchased $ 167240 Cost of goods sold 4563 Solution Attempts: 1 of 3 used Save for Later

Answer 1

Net purchases = Purchases - Purchase discounts - Purchase returns and allowances
Net purchases = $163,770 - $6,320 - $5,210
Net purchases = $152,240

Cost of goods purchased = Net purchases + Freight-in
Cost of goods purchased = $152,240 + $9,790
Cost of goods purchased = $162,030

Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory
Cost of goods sold = $32,910 + $162,030 - $28,930
Cost of goods sold = $166,010