A company that uses the periodic inventory system provided the following information: 1. Beginning inventory $4,000
2) Purchases $150,000
3) Purchase discounts $2,300
4) Purchase returns and allowances $700
At the end of the period, the physical count of inventory reveals that $17,000 worth of inventory is on hand. What is the amount of cost of goods sold?

Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases - Purchase discounts - Purchase returns and allowances - Ending inventory= 4,000 + 150,000 - 2,300 - 700 - 17,000= $134,000

A Company That Uses the Periodic Inventory System Provided the Following