Use this information to answer the following question. In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A) $305,000.
B) $275,000.
C) $295,000.
D) $215,000.

Question

Use this information to answer the following question.  In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A) $305,000. 
B) $275,000. 
C) $295,000. 
D) $215,000.

Quizplus · Accepted Answer

Starting inventory + Purchases - Ending inventory = Cost of goods sold
$22,000 + $287,000 - $14,000 = $295,000
Net sales + Cost of goods sold = Gross profit
Gross profit = $400,000 - $295,000 = $105,000
Net sales = Gross profit + Operating expenses
Operating expenses = $70,000
Net sales = $105,000 + $70,000 = $175,000 + $120,000 = $295,000. Therefore, the answer is option C.

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