A Company That Uses the Periodic Inventory Method Provided the Following

question 59

Multiple Choice

A company that uses the periodic inventory method provided the following information: 1. Beginning inventory $4,000
2. Purchases $120,000
3. Purchase discounts $2,400
4. Purchase returns and allowances $800
At the end of the period, the company does an inventory count and finds $18,000 worth of inventory on hand.
What is the amount of Cost of goods sold?

• A)$102,800
• B)$104,200
• C)$138,800
• D)$128,800

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