Bright Garden Center Had the Following Data for May Use Four Decimal Places

question 86

Multiple Choice

Bright Garden Center had the following data for May:
$$\begin{array} { | l | r | r | } \hline & \text { Cost Price } & \text { Retail Price } \\\hline \text { Beginning inventory } & \$ 2,000 & \$ 3,600 \\\hline \text { Purchases } & 3,000 & 4,400 \\\hline \text { Sales } & & 4,500 \\\hline\end{array}$$
Use four decimal places.The cost of the estimated inventory on May 31 under the retail method is:

• A)$3,500.00.
• B)$2,871.50
• C)$2,187.50
• D)$500.00

---

Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit, yet to be paid.

Accounts Receivable Period

The average number of days it takes for a business to collect payments owed by its customers.

Credit Sales

Sales made by a business for which payment is received at a later date, extending credit to the buyer.

Cash Collections

are the payments received by a company from its customers in exchange for goods or services sold on credit.