Calculate the Cost of Sales for a Retailer Using the Periodic

question 81

Multiple Choice

Calculate the cost of sales for a retailer using the periodic inventory system from the following details.
$$\begin{array} { | l | l | } \hline \text { Purchases } & \$ 520,000 \\\hline \text { Beginning inventory } & 180,000 \\\hline \text { Purchase returns and allowances } & 50,000 \\\hline \text { Purchase discounts } & 12,000 \\\hline \text { Freight in } & 18,000 \\\hline \text { Ending inventory } & 180,000 \\\hline\end{array}$$

• A) $520,000
• B) $476,000
• C) $836,000
• D) $494,000

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Definitions:

Global Output

The total value of goods and services produced worldwide over a specific time period.

Percent

A part or portion of a whole expressed as a fraction of 100.

Increase

A rise or growth in quantity, size, intensity, or extent of a particular object or phenomenon.

Modernization Theory

is a sociological theory that looks at the processes through which societies move from traditional or less developed institutions to those characteristic of more developed societies.