Using the Following Information, What Is the Amount of Merchandise

question 92

Multiple Choice

Using the following information, what is the amount of merchandise available for sale?

• A) $35,540
• B) $36,580
• C) $37,700
• D) $34,500

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Definitions:

Periodic inventory system

An inventory accounting system where updates to inventory levels are made on a periodic basis, rather than each time a sale or purchase occurs.

Physical inventory

The actual counting and recording of merchandise goods and materials held by a business for the purpose of verifying stock levels and value.

End of the period

Refers to the conclusion of an accounting period, at which financial statements are prepared.

Net realizable value

The estimated selling price of goods, minus the cost of their sale or disposal.