Cinnamon Buns Co. (CBC) started 2013 with $52,000 of merchandise on hand. During 2013, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.32.Assuming CBC uses the gross method to record purchases, ending inventory would be:
33.What is cost of goods available for sale, assuming CBC uses the gross method?
34.Cost of goods sold is given by: A. Beginning inventory - net purchases + ending inventory.B. Beginning inventory + accounts payable - net purchases.C. Net purchases + ending inventory - beginning inventory.D. Net Purchases + beginning inventory - ending inventory.
35.The LIFO Conformity Rule states that if LIFO is used for:
36.The largest expense on a retailer's income statement is typically:
37.In a perpetual average cost system: