A Company That Uses the Periodic Inventory System Provided the Following

question 154

Multiple Choice

A company that uses the periodic inventory system provided the following information:
1.Beginning inventory $5,000
2.Purchases $130,000
3.Purchase discounts $2,000
4.Purchase returns and allowances $600
At the end of the period,the company does an inventory count and finds $16,000 worth of inventory on hand.What is the amount of cost of goods sold?

• A)$116,400
• B)$132,400
• C)$148,400
• D)$127,400

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Definitions:

Hemoglobin

A molecule found in red blood cells that is tasked with carrying oxygen from the lungs to various parts of the body.

Anemia

A condition in which there is a deficiency of red cells or of hemoglobin in the blood, resulting in pallor and fatigue.

Blood Cholesterol

A lipid substance present in the blood, essential for building cells and hormones, but high levels can lead to cardiovascular diseases.

Heredity

The passing of genetic traits from parents to offspring, determining various characteristics such as eye color and height.