The Office Mart store in South Beach experienced the following events during the current year: 1. Incurred $200,000 in marketing costs. 2. Purchased $600,000 of merchandise. 3. Paid $20,000 for

The Office Mart store in South Beach experienced the following events during the current year:

1. Incurred $200,000 in marketing costs.

2. Purchased $600,000 of merchandise.

3. Paid $20,000 for transportation-in costs.

4. Incurred $200,000 of administrative costs.

5. Took an inventory at year-end and learned that goods costing $100,000 were on hand. This compared with a beginning inventory of $150,000 on January 1.

6. Determined that sales revenue during the year was $1,500,000.

7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.

a. beginning balance

b. transfers-in

c. ending balance

d. transfers out

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