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At the end of last year, Games-2-Use had merchandise costing $270,000 in inventory. During January of the current year, the company purchased merchandise costing $220,000,
At the end of last year, Games-2-Use had merchandise costing $270,000 in inventory. During January of the current year, the company purchased merchandise costing $220,000, and sold merchandise that it had purchased at a total cost of $174,000. Games-2-Use uses a perpetual inventory system.
The total amount debited to the Inventory account during January was:
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$11,000 in Year 1 and $5,500 in Year 2.
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$5,250 in Year 1 and $10,500 in Year 2.
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$5,750 in Year 1 and $11,500 in Year 2.
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$3,750 in Year 1 and $11,000 in Year 2.
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