In the trial balance of a firm's accounting records, Inventory has a balance of $40 000 and Purchases has a balance of $1 000 000. The count of ending inventory is $50 000. Cost of sales is:
A)$1 040 000
B)$1 050 000
C)$ 990 000
D)$ 910 000

Question

Quizplus · Accepted Answer

Cost of sales is calculated as: Opening Inventory ($40,000) + Purchases ($1,000,000) - Ending Inventory ($50,000) = $990,000.

In the Trial Balance of a Firm's Accounting Records, Inventory