A Company That Uses the Periodic Inventory Method Provided the Following

question 53

Multiple Choice

A company that uses the periodic inventory method provided the following information:
1.Beginning inventory $3000
2.Purchases $140,000
3.Purchase discounts $2200
4.Purchase returns and allowances $1000
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 sales?

• A)$147,400
• B)$155,800
• C)$123,800
• D)$140,000

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