A Merchandiser Uses a Perpetual Inventory System

question 98

Multiple Choice

A merchandiser uses a perpetual inventory system.The beginning Retained Earnings 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 company declared and paid $25,000 as dividends.The closing balance of Retained Earnings would be ________.

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

---

Definitions:

Nonverbal Communication

Nonverbal communication consists of transmitting messages without the use of words, through gestures, body language, facial expressions, and other visual cues.

Investigative Selling

A sales technique involving detailed research and questioning to understand a customer's specific needs and challenges, leading to customized solutions.

Transactional Selling

A sales approach focused on short-term interactions where the primary goal is to make an immediate sale rather than build a long-term relationship.

Source Partnering

The strategic collaboration between buyers and suppliers intended to improve or optimize the sourcing process.