Midgic Farm Store had a beginning merchandise inventory of $9,000. During the period, Purchases were $35,000; Purchase Returns, $1,500; and Freight In $3,000. A physical count of inventory at the end of the period revealed that $6,000 was still on hand. Using a periodic inventory system, the cost of goods sold was
A) $44,000.
B) $39,500.
C) $45,500.
D) $42,500.

Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases - Purchase returns - Freight in - Ending inventory= $9,000 + $35,000 - $1,500 - $3,000 - $6,000= $39,500

Midgic Farm Store Had a Beginning Merchandise Inventory of $9,000