Purrfect Pets uses the perpetual inventory system.At the beginning of the quarter,Purrfect Pets has $30,000 in inventory.During the quarter the company purchases $7,900 of new inventory from a vendor,returned $700 of inventory to the vendor,and took advantage of discounts from the vendor of $200.At the end of the quarter the balance in inventory is $26,500.What is the cost of goods sold?
A) $10,500
B) $11,400
C) $3,500
D) $11,900

Question

Quizplus · Accepted Answer

The cost of goods sold is calculated as: Beginning Inventory ($30,000) + Purchases ($7,900) - Returns ($700) - Discounts ($200) - Ending Inventory ($26,500) = $10,500.

Purrfect Pets Uses the Perpetual Inventory System