A Merchandiser Uses a Perpetual Inventory System

question 4

Multiple Choice

A merchandiser uses a perpetual inventory system. The beginning Capital balance of a merchandiser was $100,000. During the year, sales revenue amounted to $75,000, sales returns and allowances were $1,000, sales discounts were $3,000, cost of goods sold was $40,000, and all other expenses totaled $10,000. The total withdrawals amounted to $25,000. The closing balance of Capital would be:

• A)$99,000
• B)$96,000
• C)$90,000
• D)$100,000

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Definitions:

Experiential Processes

Mental and emotional mechanisms through which individuals perceive, interpret, and interact with their environment on a direct, personal level.

Lay Epistemology

It involves the methods and theories that non-experts use to acquire and justify knowledge in everyday life.

Preexisting Belief

A belief or opinion held before being exposed to new information or evidence.

Cognitive Impairments

Refers to conditions that significantly restrict an individual's mental functioning, affecting memory, attention, and decision-making.