Kehoe Co. uses a periodic inventory system. The company had beginning inventory of $400 and ending inventory of $200. Kehoe's cost of goods sold was $1,600. Based on this information, Kehoe must have purchased inventory amounting to:

Question

Quizplus · Accepted Answer

Beginning inventory + Purchases - Ending inventory = Cost of goods sold$400 + Purchases - $200 = $1,600Purchases = $1,600 - $400 + $200Purchases = $1,400

Kehoe Co Uses a Periodic Inventory System