On December 31,2017,you count 300 tie clips in inventory.During the next quarter,you carefully record the effect of each purchase and sale transaction on inventory.You buy 128 tie clips during the next quarter.On March 31,2018,you count 288 tie clips in inventory.Which of the following is true?
A)Ending inventory would be 278 tie clips on March 31,2018.
B)Your company uses the periodic inventory method.
C)Your company's records would show that 140 tie clips were sold during the quarter.
D)All of the answers are acceptable.

Question

Quizplus · Accepted Answer

Ending inventory = Beginning inventory + Purchases - Goods sold 300 + 128 - Goods sold = 288 Goods sold = 140.

On December 31,2017,you Count 300 Tie Clips in Inventory