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:

Aldopentose

A five-carbon sugar (pentose) that contains an aldehyde group as part of its structure, important in nucleic acids and energy metabolism.

Ketotetrose

A type of monosaccharide with four carbon atoms and a ketone functional group.

Aldotetrose

A four-carbon sugar (tetrose) with an aldehyde group as its carbonyl functional group.

Aldohexose

A six-carbon sugar with an aldehyde group at one end.