A Company That Uses the Periodic Inventory Method Provided the Following

question 53

Multiple Choice

A company that uses the periodic inventory method provided the following information:
1.Beginning inventory $3000
2.Purchases $140,000
3.Purchase discounts $2200
4.Purchase returns and allowances $1000
At the end of the period,the company does an inventory count and finds $16,000 worth of inventory on hand.
What is the amount of Cost of sales?

• A)$147,400
• B)$155,800
• C)$123,800
• D)$140,000

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Definitions:

Qualifying Expenses

Expenses that meet the criteria set by tax laws or other regulations for deductible or otherwise favorable treatment.

Child and Dependent Care Credit

A tax credit offered to taxpayers to offset the cost of care for qualifying dependents, enabling the taxpayer to work or look for work.

Qualified Day Care Center

A child care facility that meets specific criteria set by tax law, potentially eligible for certain tax benefits.

American Opportunity Tax

An educational credit for sanctioned expenses related to an eligible student’s initial four years at a higher education institution.