Problem: XYZ reports the following information: Beginning inventory: $1,500 Ending Inventory: $2,200 Purchases $3,000 Purchase returns $500 Sales returns $1,500 Sales discounts $200 Freight In: $250 Freight Out: $300 What is XYZ Company’s Cost of Goods Sold for the year? a. $1,800 b. $2,050 c. $2,350 d. $6,450

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Problem Details

XYZ reports the following information:

Beginning inventory: $1,500

Ending Inventory: $2,200

Purchases $3,000

Purchase returns $500

Sales returns $1,500

Sales discounts $200

Freight In: $250

Freight Out: $300

What is XYZ Company’s Cost of Goods Sold for the year?

a. $1,800

b. $2,050

c. $2,350

d. $6,450

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