Use the Following Information to Answer Questions

question 89

Multiple Choice

Use the following information to answer questions
Abalone Corp.uses a periodic inventory system.
A physical count of merchandise inventory on July 31 shows that 25 units are on hand.
-Under the FIFO cost method, ending inventory at July 31 was

• A)$1,500.
• B)$1,480.
• C)$500.

---

Definitions:

Total Sales

The aggregate revenue a company generates from selling its products or services within a specific period.

Cash Received

This refers to the actual amount of cash that a company collects from its business activities, including sales, financing, and investing activities.

Credit Sales

Credit sales are transactions where the goods or services are provided to the customer with the arrangement to pay at a later date.

Cash Receipts

The collection of money, typically in the form of cash or checks, received by a business during a period.