At the Beginning of the Year, Kelly Sales Had $2,400

question 88

Essay

At the beginning of the year, Kelly Sales had $2,400 of merchandise inventory. During the year, Kelly purchased $22,000 of inventory. At the end of the year, a count of the inventory revealed that Kelly had $1,600 of inventory on hand. Kelly uses a periodic inventory system.
Required:
a) What is the amount of goods available for sale?
b) What is cost of goods sold for the year?

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Definitions:

Assets Consumed

Resources or economic value used up or depleted by a company during its operations.

Total Liabilities

The total amount of all financial obligations a company owes to external parties.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner’s claim on the business assets.

Period's Change

The difference in a specific financial indicator or performance measure from one established period to the next.