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Company Uses the Periodic Inventory Method and Offers the Following

Question 95

Multiple Choice

Company uses the periodic inventory method and offers the following information:
 Beginning inventory $4,000 Purchases $120,000 Purchase discounts $2,400 Purchase returns and allowances $800\begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\\text { Purchases } & \$ 120,000 \\\text { Purchase discounts } & \$ 2,400 \\\text { Purchase returns and allowances } & \$ 800\end{array}
At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand.
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Which of the following pairs of T-accounts accurately represents the first two closing entries?


A)
Company uses the periodic inventory method and offers the following information: \begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\ \text { Purchases } & \$ 120,000 \\ \text { Purchase discounts } & \$ 2,400 \\ \text { Purchase returns and allowances } & \$ 800 \end{array} At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand. - Which of the following pairs of T-accounts accurately represents the first two closing entries? A) B) C) D)
B)
Company uses the periodic inventory method and offers the following information: \begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\ \text { Purchases } & \$ 120,000 \\ \text { Purchase discounts } & \$ 2,400 \\ \text { Purchase returns and allowances } & \$ 800 \end{array} At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand. - Which of the following pairs of T-accounts accurately represents the first two closing entries? A) B) C) D)
C)
Company uses the periodic inventory method and offers the following information: \begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\ \text { Purchases } & \$ 120,000 \\ \text { Purchase discounts } & \$ 2,400 \\ \text { Purchase returns and allowances } & \$ 800 \end{array} At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand. - Which of the following pairs of T-accounts accurately represents the first two closing entries? A) B) C) D)
D)
Company uses the periodic inventory method and offers the following information: \begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\ \text { Purchases } & \$ 120,000 \\ \text { Purchase discounts } & \$ 2,400 \\ \text { Purchase returns and allowances } & \$ 800 \end{array} At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand. - Which of the following pairs of T-accounts accurately represents the first two closing entries? A) B) C) D)

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