A Company That Uses the Periodic Inventory Method Provides the Following

question 19

Multiple Choice

A company that uses the periodic inventory method provides the following information: 1. Beginning Inventory $10,000
2. Net Purchases $90,000
At the end of the period, the company does an inventory count and finds $15,000 of inventory on hand.
What is the amount of Cost of goods sold?

• A)$90,000
• B)$115,000
• C)$85,000
• D)$75,000

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, determined by supply and demand dynamics in open markets.

Market Value

The current market valuation at which you can buy or sell a service or asset.

List Price

The advertised or published price of a product or service before any discounts, allowances, or rebates are applied.

Deferred Payment Contract

A contractual agreement where payment is postponed to a future date beyond the standard billing period.