1) Benny Warehouse would like to know what it's ending inventory is at December 31st, 2016. The information is as follows:

Inventory at 12/31/2015 - $95,000 Purchases made 1/1/2016 thru 12/31/2016 - $865,000

Costs of Goods sold for 2016 - $423,000

A) $347,000

B) $328,000

C) $442,000

D) $537,000

2) Fenn Stores, Inc. had sales of $9,000,000 during December, year 2. Experience has shown that merchandise equaling 8% of sales will be returned within thirty days and an additional 5% will be returned within ninety days. Returned merchandise is readily resalable. In addition, merchandise equaling 10% of sales will be exchanged for merchandise of equal or greater value. What amount should Fenn report for net sales in its income statement for the month of December year 2?

A) $8,100,000

B) $6,930,000

C) $7,830,000

D) $8,280,000