A company that uses the periodic inventory method provided the following information:
1.Beginning inventory $3000
2.Purchases $140,000
3.Purchase discounts $2200
4.Purchase returns and allowances $1000
At the end of the period,the company does an inventory count and finds $16,000 worth of inventory on hand.
What is the amount of Cost of sales?

Question

A company that uses the periodic inventory method provided the following information: 
1.Beginning inventory $3000
2.Purchases $140,000
3.Purchase discounts $2200
4.Purchase returns and allowances $1000
At the end of the period,the company does an inventory count and finds $16,000 worth of inventory on hand.
What is the amount of Cost of sales?

Quizplus · Accepted Answer

The cost of sales is calculated as: Beginning Inventory + Purchases - Purchase Discounts - Purchase Returns and Allowances - Ending Inventory. So, $3,000 + $140,000 - $2,200 - $1,000 - $16,000 = $123,800.

A Company That Uses the Periodic Inventory Method Provided the Following