Horse Creek Company had beginning inventory of $34,000, purchases of $210,000, purchase returns of $13,000, and ending inventory of $40,000. What was the cost of goods sold?

A. $198,000

B. $191,000

C. $157,000

D. $204,000

57. Ace Electronics accepted a promissory note from Fenstermaker, who promised to pay Ace $2,000 plus 6% interest at the end of six months. What is the amount of interest that will be paid at the end of six-month period?

A. $2,060

B. $240

C. $60

D. $120

The Ribbon Company began the operation on May 1. The following transaction took place in May:

Purchased $400,000 of merchandise on account.

Purchase an additional $200,000 of merchandise for cash.

Paid $3,000 cash for freight to deliver the merchandise purchased.

Paid $25,000 for the store managers