The following information for the year 2011 is taken from the accounts of Thornrose Company. The company uses the periodic inventory method. A)$49,650. B)$27,250. C)$21,075. D)$28,325. Solution Answer: .

1. The following information for the year 2011 is taken from the accounts of Thornrose Company.
The company uses the periodic inventory method.
A)$49,650.
B)$27,250.
C)$21,075.
D)$28,325.
The following information for the year 2011 is taken from the accounts of Thornrose Company.
The company uses the periodic inventory method.
Solution
Answer:
In$
Inventory, December 31, 2010 7400
Purchases 42,000
Less: Purchase Returns and Allowances 575
Less: Purchase Discounts 250
Net Purchases 41,175
Goods available for sale 48,575
Less: Cost of Goods Sold 21,900
Balance of Goods on Dec 31,2011 26,675
Freight on Goods Purchased under terms FOB Shipping Point 1650
Inventories at December 31,2011 28,325