A company uses the periodle system. Beginning inventory was $40.000. At the end of the year (12/31), the following information is available: Total freight-in expenses were $30,000. Goods purchased by the company for $15,000 were returned during the year the "Purchase returns" account was credited during the year) The company took $10,000 cash discounts on purchases (they use the gross method, the "Purchase discounts" account was credited during the year). Gross purchases during the year totaled $1,000,000 The value of goods physically present in stock on 12/31 is estimated to be $90,000; The company recently sold and shipped goods for $20,000, FOB-Destination, to be delivered to a customer in January. Which of the following is COGS for the year? 935,000 905,000 950,000 MacBook Pro 945,000 955,000 920,000 960,000 930,000 950,000 825,000 745,000 1,150,000 1,500,000 MacBook Pro (continued from the previous question) Which of the following statements are true about the end-of-period journal entries recorded by the company? (select all that apply - 1.e. Just one or as many as all of them) Purchase discounts will be credited A contra-sales account will be debited Freight-in expenses will be credited The journal entries will not affect the company's quick ratio The journal entries will decrease the company's current ratio Cash will be credited Page 5 of 8 Previous Page Next Page MacBook Pro