Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 55

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.