Assume a Company Uses the Periodic Inventory System and Has

question 129

Multiple Choice

Assume a company uses the periodic inventory system and has a beginning merchandise inventory balance of $10,000,purchases of $150,000,and sales of $250,000.The company closes its records once a year on December 31.In the accounting records,the merchandise inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

• A)indeterminate.
• B)less than $5,000.
• C)more than $5,000.
• D)equal to $5,000.

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Definitions:

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