Mountain Mabel's is a simall general store located just outside of Yellowstone National Park store uses a periodic inventory system. Every January 1. Mabel and her husband close the e and take a complete physical inventory while watching the Rose Parade on television. Last ve the inventory amounted to $5.200; this year it totaled $3,800. During the current year, the bu ness recorded sales of $125.000. and purchases of $62,000. Instructions a. Compute the cost of goods sold for the current year. b Explain why a small business such as this might use the periodic inventory system. C. Explain some of the disadvantages of the periodic system to a larger business, such as a Sears store.

Mountain Mabel's is a simall general store located just outside of Yellowstone National Park store uses a periodic inventory system. Every January 1. Mabel and her husband close the e and take a complete physical inventory while watching the Rose Parade on television. Last ve the inventory amounted to $5.200; this year it totaled $3,800. During the current year, the bu ness recorded sales of $125.000. and purchases of $62,000. Instructions a. Compute the cost of goods sold for the current year. b Explain why a small business such as this might use the periodic inventory system. C. Explain some of the disadvantages of the periodic system to a larger business, such as a Sears store.

Name: 226CHAPTER 5 Accounting for Merchandising ActivitiesMountain Mabel's
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Description: 226CHAPTER 5 Accounting for Merchandising ActivitiesMountain Mabel's is a simali general store located just outside of Yeilowstone National Parkstore uses a periodic inventory system. Every January 1. Mabel and her husband close the eand take a comp

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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