At the beginning of the quarter Purrfect Pets has $30,000 in inventory.During the quarter the company purchases $7,900 of new inventory,has purchase returns of $700,and purchase discounts of $200.At the end of the quarter the balance in the Inventory account is $26,500.What is the cost of goods sold?
A)$10,500.
B)$11,400.
C)$3,500.
D)$11,900.

Question

Quizplus · Accepted Answer

Net purchases = $7,900 - 700 - 200 = 7,000 COGS = Beg.Inventory + Net Purchases - Ending Inventory 30,000 + 7000 - 26,500
COGS = $10,500.

At the Beginning of the Quarter Purrfect Pets Has $30,000