Company Uses the Periodic Inventory Method and Offers the Following

Multiple Choice

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 T-accounts accurately represents the first three closing entries?

A)
$$\begin{array}{c} { \text { Cost of goods sold } } \\ \hline\begin{array}{ l r | l } \text { 1) } & & 4,000 \\\text { 2) } & 16,000 & \\\text { 3) } & & 116,800\end{array}\end{array}$$
B)
$$\begin{array}{c} { \text { Cost of goods sold } } \\ \hline\begin{array}{ l r | l } \text { 1) } & 116,800 & \\2 ) & 4,000 & \\3 ) & & 116,000\end{array}\end{array}$$
C)
$\begin{array}{lr|r} {\text { Cost of goods sold }} \\\hline \text { 1) } && 116,800 & \\\text { 2) } & & 16,000 \\\text { 3) } & 4,000 &\end{array}$
D)
$\begin{array}{lr|r} {\text { Cost of goods sold }} \\\hline \text { 1) } & 4,000 & \\\text { 2) } & & 16,000 \\\text { 3) } & 116,800 &\end{array}$