If a company uses the periodic inventory method, which of the following is subtracted from cost of goods available for sale to arrive at cost of goods sold?
A) Beginning inventory
B) Ending inventory
C) Purchase discounts and purchase returns and allowances
D) Net purchases

Question

Quizplus · Accepted Answer

Under the periodic inventory method, the cost of goods sold (COGS) is calculated by subtracting the ending inventory from the cost of goods available for sale. This method does not continuously update inventory balances but rather does so at the end of a period.

If a Company Uses the Periodic Inventory Method, Which of the Following