Sampson Company's Accounting Records Show the Following for the Year

question 98

Multiple Choice

Sampson Company's accounting records show the following for the year ending on December 31, 2017. $$\begin{array} { l r } \text { Purchase Discounts } & \$ 11,200 \\\text { Freight-In } & 15,600 \\\text { Purchases } & 700,020 \\\text { Beginning Inventory } & 47,000 \\\text { Ending Inventory } & 57,600 \\\text { Purchase Returns and Allowances } & 12,800\end{array}$$ Using the periodic system, the cost of goods purchased is

• A)$660,420.
• B)$708,420.
• C)$717,220.
• D)$691,620.

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Definitions:

Voluntary Liquidation

The process of dissolving a company by its own decision, distributing its assets to creditors and shareholders.

Prepetition Assets

Assets that a debtor owned before filing for bankruptcy protection.

Bankruptcy Estate

The assets that are collected from a debtor who files for bankruptcy.

Bankruptcy Remedies

Legal measures available to individuals or businesses that are unable to repay their debts, providing a way to resolve insolvency issues.