Calculate the cost of goods credited to the head office trading account

Stock at branch 1st January at cost400
Goods sent to branch at cost8000
Returns to head office340
Cash sales9160
Stock at branch 31st December at cost720

Use the information below to answer the question.

Adex Ltd. Issues stock to its retail branches at cost price.

Calculate the cost of goods credited to the head office trading account

A #7200

B #7460

C #7500

D #7660

Answer is D

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