An electronics retailer has a beginning-of-year inventory (at cost)of $400,000; its ending inventory (at cost)is $410,000.Yearly purchases are $700,000 and transportation charges equal $25,000.The retailer's merchandise available for sale is ________.

Question

Quizplus · Accepted Answer

To calculate the merchandise available for sale, we need to add the beginning inventory, annual purchases, and transportation charges, and then subtract the ending inventory.

Merchandise available for sale = Beginning inventory + Purchases + Transportation charges - Ending inventory
Merchandise available for sale = $400,000 + $700,000 + $25,000 - $410,000
Merchandise available for sale = $715,000

Therefore, the merchandise available for sale is $715,000, which corresponds to choice letter B.

An Electronics Retailer Has a Beginning-Of-Year Inventory (At Cost)of $400,000;