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:

Investment Bankers

Financial professionals who assist corporations and governments in raising capital by underwriting and issuing securities and advising on mergers and acquisitions.

Financial Intermediation

The process by which financial institutions act as intermediaries between lenders and borrowers.

Institutional Investor

A business organization that buys and sells securities. Generally, a fund of some kind such as a mutual fund or a pension fund that invests the pooled money of its clients.

Pension Funds

Investment pools that collect and invest funds contributed by sponsors and beneficiaries to provide future pension benefits.