Appendix EX 6-32 Identify items missing in determining cost of merchandise sold

For (a) through (d), identify the items designated by X and Y.

a. Purchases - (X + Y) = Net purchases.
b. Net purchases + X = Cost of merchandise purchased.
c. Merchandise inventory (beginning) + Cost of merchandise purchased = X.
d. Merchandise available for sale - X = Cost of merchandise sold.


Answer:
a. Purchases discounts, purchases returns and allowances
b. Freight in
c. Merchandise available for sale
d. Merchandise inventory (ending)