Use this information to answer the following question. In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A)$305,000.
B)$275,000.
C)$295,000.
D)$215,000.

Question

Use this information to answer the following question.  In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A)$305,000. 
B)$275,000. 
C)$295,000. 
D)$215,000.

Quizplus · Accepted Answer

To calculate net sales, we need to subtract the value of ending merchandise inventory from the sum of beginning inventory and cost of goods sold. 
Beginning merchandise inventory = $22,000 
Ending merchandise inventory = $14,000

Cost of goods sold = $220,000 (given)

Therefore, 
Net sales = Beginning inventory + Cost of goods sold -Ending inventory 
Net sales = $22,000 + $220,000 - $14,000 = $228,000

Thus, the correct option is C, $295,000.

Use This Information to Answer the Following Question