Questions
Introduction to Financial Accounting M4: Quiz
Single choice
ABC 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?
Options
A.$7,500
B.$ 6,000.
C.$7,000
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Verified Answer
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Step-by-Step Analysis
To tackle this problem, I’ll start by outlining the basic relationship in a perpetual inventory system: Beginning Inventory + Purchases − Cost of Goods Sold = Ending Inventory.
Option 1: $7,500 as Purchases. If we plug......Login to view full explanationLog in for full answers
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