Klein's Shoe Company uses a perpetual inventory system.The beginning balance in its inventory account is $1,500 and the ending balance is $1,000.Cost of goods sold is $6,500.What was the amount of inventory purchased during the year?

Question

Quizplus · Accepted Answer

The amount of inventory purchased during the year can be calculated using the following formula:Beginning inventory + Purchases - Ending inventory = Cost of goods sold$1,500 + Purchases - $1,000 = $6,500Purchases = $6,500 + $1,000 - $1,500 = $6,000

Klein's Shoe Company Uses a Perpetual Inventory System