A Company That Uses the Periodic Inventory System Provided the Following

Multiple Choice

A company that uses the periodic inventory system provided the following information:
1.Beginning inventory $5,000
2.Purchases $130,000
3.Purchase discounts $2,000
4.Purchase returns and allowances $600
At the end of the period,the company does an inventory count and finds $16,000 worth of inventory on hand.What is the amount of cost of goods sold?

A) $116,400
B) $132,400
C) $148,400
D) $127,400