If Beginning Inventory Is $5,000,ending Inventory Is $3,000,net Purchases Is

question 91

Multiple Choice

If beginning inventory is $5,000,ending inventory is $3,000,net purchases is $12,000 and Freight-in is $400,what is the Cost of Goods Sold?

• A)$17,400
• B)$17,000
• C)$14,400
• D)$14,000

---

Definitions:

Inventory Value

The total cost or market value of all the goods and materials held by a company.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit.

Credit Sales

Sales made on credit, allowing the buyer to pay at a later date.

Days' Sales Outstanding

A financial metric that shows the average number of days it takes a company to collect payments after a sale has been made.