Cortez Company updates its inventory records perpetually.The company's records showed a beginning inventory of $1,800,cost of goods sold of $4,200,and ending inventory of $2,400.How much inventory was purchased during the year?

Question

Quizplus · Accepted Answer

Ending inventory = Beginning inventory + Purchases − Cost of goods sold
Purchases = Ending inventory + Cost of goods sold − Beginning inventory
= $2,400 + $4,200 − $1,800 = $4,800

Cortez Company Updates Its Inventory Records Perpetually