A Company That Uses the Periodic Inventory System Provided the Following

question 8

Multiple Choice

A company that uses the periodic inventory system provided the following information: 1.Beginning inventory $5,000
2) Purchases $140,000
3) Purchase discounts $2,300
4) Purchase returns and allowances $600
At the end of the period,the physical count of inventory reveals that $15,000 worth of inventory is on hand.What is the amount of cost of goods sold?

• A) $127,100
• B) $142,100
• C) $157,100
• D) $137,100

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Definitions:

Fishing

The activity of catching fish for commercial, recreational, or subsistence purposes.

Total Allowable Catch (TAC)

The overall limit set by a government or a fisheries commission on the total number of fish or tonnage of fish that fishers collectively can harvest during some particular time period. Used to set the fishing limits for individual transferable quotas (ITQs).

Pacific Halibut

A species of flatfish found in the North Pacific Ocean, known for its commercial and recreational value.

ITQs

Individual Transferable Quotas, a common market-based tool used to regulate fishing efforts and conserve fish stocks by allocating specific catch limits to fishers.