Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000. What was the total amount of the company's merchandise purchases for the month?

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The total amount of the company's merchandise purchases for the month can be calculated as follows:Beginning merchandise inventory + Purchases - Ending merchandise inventory = Cost of goods sold$20,000 + Purchases - $18,000 = $84,000Purchases = $84,000 + $18,000 - $20,000Purchases = $82,000

Haack Inc Is a Merchandising Company