In 2013, a Company's Records Contained the Following Information About

question 6

Multiple Choice

In 2013, a company's records contained the following information about inventory. The company uses a periodic inventory system and records purchases using the net method. $\begin{array} { | l | l | } \hline \text { Beginning inventory (at net) } & \$ 160 \\\hline \text { Purchases (at invoice price) } & 200 \\\hline \text { Purchase terms, 5/10, n/30 Purchase returns (at invoice price) } & 20 \\\hline \text { Discounts lost } & 10 \\\hline \text { Ending inventory (at net) } & 66 \\\hline\end{array}$
What was the amount of 2013 cost of goods sold?

• A) $274
• B) $265
• C) $264
• D) $255

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Definitions:

Prescription

Legal acquisition of rights through the continuous and habitual exercise of those rights over a lengthy period.

Reservation

The act of keeping something, such as a right or property, specifically withheld or protected from being given up or used.

Lien

A legal right or interest that a lender has in the borrower’s property, granted until a debt owed by the borrower is paid off.

Real Property

Real Property entails land and anything permanently affixed to it, such as buildings, in contrast to personal property or chattels.