Assuming the periodic inventory method is used, cost of sales is calculated from the following equation:

a. beginning inventory + cost of goods purchased ending inventory.

b. sales + gross profit ending inventory + beginning inventory.

c. beginning inventory cost of goods purchased + ending inventory.

d. sales cost of goods purchased + beginning inventory ending inventory.

133.

The trial balance of Wentworth Ltd included the following balances:

	Debit	Credit
Accounts receivable	$45 000
Allowance for doubtful debts		$6 000

It was decided to increase the allowance for doubtful debts account by $3 000. The journal entry to be made on that date would include a debit to:

a. Bad debts expense

b. Accounts Receivable

c. Allowance for doubtful debts

d. None of the above