A Company That Uses the Periodic Inventory Provides the Following

question 96

Multiple Choice

A company that uses the periodic inventory provides the following information:
1.Beginning Inventory $11,000
2.Net Purchases $95,000
At the end of the period,the company does an inventory count and finds $10,000 of inventory on hand.
What is the amount of cost of goods sold?

• A)$95,000
• B)$116,000
• C)$96,000
• D)$85,000

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Definitions:

Payable to Order

A financial term indicating that a payment should be made to a specific individual or entity whose name appears on the document.

Drawer

In banking and finance, the person who writes or issues a check or draft, instructing the bank to pay a specified amount to the person or entity named.

Contractual Capacity

The legal ability to enter into a binding contract, typically requiring parties to be of a certain age and sound mind.

Negotiation

The process whereby two or more parties discuss and attempt to reach a mutual agreement on matters of common interest.