A Merchandiser Uses a Perpetual Inventory System

question 26

Multiple Choice

A merchandiser uses a perpetual inventory system.The beginning Owner,Capital balance of the merchandiser was $130,000.During the year,Sales Revenue amounted to $80,000,Sales Returns and Allowances were $2,000,Sales Discounts were $4,000,Cost of Goods Sold was $40,000,and all other expenses totaled $12,000.The company paid $27,000 in withdrawals to the owner.The closing balance of Owner,Capital would be ________.

• A)$129,000
• B)$125,000
• C)$118,000
• D)$130,000

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Definitions:

Symbolic Self-Completion

A theory suggesting individuals strive to achieve and display symbols of success in areas important to their self-identity to feel complete.

Intrinsic Motivation

The drive to act or engage in an activity for its own sake, deriving pleasure or satisfaction from the activity itself rather than external rewards.

Adequate Resources

Having sufficient means, materials, or assets required to achieve a goal or fulfill a need.

Daunting Situation

A term used to describe a scenario that is intimidating or appears difficult to deal with or overcome.