company uses the perpetual inventory system, it began operations in October. October through December,the accounting information system shows that purchases of $70, 700 were made. There was $3,800 inreturned goods with cost. Inventory with a cost of $53, 7400 was sold during the three months. These werethe only inventory transactions during the period. A physical count of inventory at the end of Decemberreported total inventory of $11, 100 remains on hand. An adjustment to bring the perpetual inventory countin line with the physical count would include a debit to inventory over and short or cost of goods sold for is itA. $1700 B. $4400 C. $2100 or D. $4200?

AmountGoods purchased$70,700Less: Goods returned$3,800Less: Cost of goods sold$53,700Perpetual…

Answered: company uses the perpetual inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Records from FDN Trading revealed the following data: Inventory, January 1 Physical count, December 31 The company uses the periodic inventory system and follows the calendar year. How much should be credited to Income Summary to reflect the ending inventory? $50,000 $72,000

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