At the end of last year, Helen's, Inc. had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000.
Based upon the above information, place the best answer in the space provided. In questions 1 through 3, assume that Helen's uses a perpetual inventory system.
-The balance in the Inventory account at January 31 was:

Question

Quizplus · Accepted Answer

The beginning inventory was $115,000. Purchases during January were $35,000, making the total available inventory $150,000. Merchandise sold cost $55,000, so the ending inventory is $150,000 - $55,000 = $95,000.

At the End of Last Year, Helen's, Inc