Assuming That Net Cost of Purchases Was $39,000 During the Year

question 150

Multiple Choice

Assuming that net cost of purchases was $39,000 during the year and that ending merchandise inventory was $1,000 less than the beginning merchandise inventory of $12,500,how much was cost of goods sold?

• A)$50,500
• B)$52,500
• C)$40,000
• D)$38,000

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Definitions:

Delivery

The act of transporting goods or services from a seller or provider to the recipient's location, completing a sales transaction.

Implied Warranty

A legal assumption that a product or service sold will meet basic quality and functionality standards.

Merchantability

A warranty that the goods sold meet reasonable expectations for use, including being fit for the purpose for which they are sold.

Hardware Store

A retail business specializing in selling hardware items, such as tools, building materials, and gardening equipment.