The balance in the Merchandise Inventory account at December 31,2012 is:

Question

Quizplus · Accepted Answer

The question does not provide any information to calculate the merchandise inventory balance, but it is given that the following information is available on December 31, 2012. The following journal entry would help to calculate the Merchandise Inventory balance:

Beginning balance of Merchandise Inventory = $1,500
Purchases = $10,000
Freight-in = $750
Purchase returns and allowances = $500
Purchase discounts = $600
Cost of Goods Sold = $10,100

Therefore, the ending balance of the Merchandise Inventory would be calculated as follows:

Beginning balance + Purchases + Freight-in – Purchase returns and allowances – Purchase discounts – Cost of Goods Sold
= $1,500 + $10,000 + $750 - $500 - $600 - $10,100
= $2,000

Thus, the answer is choice C, $2,000.

The Balance in the Merchandise Inventory Account at December 31,2012