Lutex Corporation began its accounting period with a merchandise inventory (beginning inventory) that cost $10,000. During the period, it purchased for resale merchandise with a retail value of $100,000. With purchase discounts, it paid only $80,000 for this merchandise. Thus, during this period, Lutex had ____ in goods available for sale.
A) $180,000
B) $70,000
C) $80,000
D) $90,000
E) $190,000

Question

Quizplus · Accepted Answer

The goods available for sale include the beginning inventory plus the cost of merchandise purchased. Therefore, $10,000 (beginning inventory) + $80,000 (cost of merchandise purchased) = $90,000.

Lutex Corporation Began Its Accounting Period with a Merchandise Inventory