Anthony's Shoe Company uses a perpetual inventory system.The beginning balance in its Inventory account is $1,500,and the ending balance is $1,000.Cost of goods sold is $6,500.What was the amount of inventory purchased during the year?
A)$500
B)$6,000
C)$7,000
D)$7,500

Question

Quizplus · Accepted Answer

Using the formula: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold
Plug in the given values:
$1,500 + Purchases - $1,000 = $6,500
Purchases = $6,000

Anthony's Shoe Company Uses a Perpetual Inventory System