Barnett Restaurant Equipment has a beginning merchandise inventory of $20,000.During the period, purchases were $60,000; purchase returns, $2,000; and freight-in $5,000.A physical count of inventory at the end of the period revealed that $10,000 was still on hand.The cost of goods available for sale was

Question

Quizplus · Accepted Answer

The cost of goods available for sale can be calculated by adding the beginning inventory to the purchases and freight-in and then subtracting purchase returns. 
Cost of goods available for sale = $20,000 + $60,000 + $5,000 - $2,000 = $83,000. 
Since the physical count of inventory at the end of the period was $10,000, the cost of goods sold can be calculated by subtracting the ending inventory from the cost of goods available for sale:
Cost of goods sold = $83,000 - $10,000 = $73,000. 
Therefore, the correct answer is C.

Barnett Restaurant Equipment Has a Beginning Merchandise Inventory of $20,000