Use the Following Information for the Following Questions:
Sesame

question 21

Multiple Choice

Use the following information for the following questions:
Sesame Corp.'s adjusted trial balance at December 31, 2020, included the following:
$\begin{array}{c}\begin{array}{lll}\\\text {Sales......................................................................}\\\text {Cost of goods sold..................................................}\\\text {Administrative expenses........................................}\\\text {Loss on sale of equipment.......................................}\\\text {Sales commissions..................................................}\\\text {Interest revenue.....................................................}\\\text {Loss of warehouse due to flood...............................}\\\text {Loss from operation of discontinued division.........}\\\text {Bad debt expense....................................................}\\\text {Totals.....................................................................}\end{array}\begin{array}{lll}\underline{\text {Debit}}\\\\\$ 70,000 \\28,000 \\11,000 \\9,000\\\\15,000 \\24,000 \\\underline{5,000} \\\underline{ \$ 162,000 }\\\end{array}\begin{array}{lll}\underline{\text {Credit}}\\\$170,000\\\\ \\ \\\\6,000\\ \\ \\\underline{\quad\quad} \\\underline{ \$ 176,000 }\\\end{array}\end{array}$

Sesame uses the perpetual system, and their income tax rate is $30 \%$ .
-On Sesame's multiple-step income statement for 2020, income from continuing operations is

• A) $17,500.
• B) $52,800.
• C) $24,500.
• D) $26,600.

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Definitions:

Inventory Records

Documentation that tracks the quantity, value, and movement of products or materials a company holds in stock.

FIFO Periodic

An inventory valuation method where goods first purchased or produced are also the first to be sold, assessed periodically at the end of an accounting period.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used in calculating cost of goods sold during the period.

Inventory Value

The total cost or market value of all the goods held by a company that are ready or will be ready for sale.