At the Beginning of the Year, Manhattan Sales Had $2,500

question 132

Essay

At the beginning of the year, Manhattan Sales had $2,500 of merchandise inventory. During the year, the company purchased $24,000 of inventory. At the end of the year, a count of the inventory revealed that the business had $3,880 of inventory on hand. Manhattan uses the periodic inventory system.
a) What is cost of goods sold for the year?
b) What is the amount of goods available for sale?
c) What amount of inventory will be shown on the year-end balance sheet?

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Definitions:

Apical Impulse

The point of maximal impulse on the chest wall, indicating the position of the heart; often felt during cardiac examination.

Intercostal Space

The anatomical area between two ribs, through which nerves and blood vessels pass.

Midclavicular Line

An imaginary vertical line running down from the midpoint of the clavicle in the human body, often used as a reference in medical examinations.

Jugular Venous Pulsations

Observable pulsations of the jugular vein in the neck, used clinically to assess central venous pressure and heart function.