Under periodic inventory system, cost of goods sold are:

A.

recorded before preparing financial statements.

B.

recorded when payment is received.

C.

recorded at current market price.

D.

recorded when the sales are made.

E.

recorded when the purchases are made.

Under periodic inventory system, purchase of inventory is recorded with a debit to:

	A.	purchase payable.
	B.	cash.
	C.	purchases.
	D.	inventory.
	E.	accounts payable.

Alice Corporation began the year with $200,000 in inventory. The company reported cost of goods sold of $903,000 for the year. An end of the year count showed $210,000 in inventory.. How much inventory was purchased during the year?

	A.	$693,000
	B.	$893,000
	C.	$913,000
	D.	$903,000
	E.	$703,000