Question

The following information is from the accounting records of Company A for the fiscal year ended March 31, 2016. Company A uses the periodic inventory system for its inventory record-keeping:

Merchandise inventory, April 1, 2015:

$193,250

Merchandise inventory, March 31, 2016:

$180,100

Purchases for the fiscal year:

$1,079,600

Purchases returns and allowances for the fiscal year:

$51,200

Purchases discounts for the fiscal year:

$18,500

Sales for the fiscal year:

$1,860,000

Freight-in for the fiscal year:

$19,250

Which of the following statements is true about the total cost of merchandise purchased for the fiscal year for Company A?

It is greater than $1,000,000 and less than $1,100,000.

It is greater than $900,000 and less than $1,000,000.

It is greater than $1,100,000 and less than $1,200,000.

It is greater than $1,500,000 and less than $1,600,000.

It is greater than $1,200,000 and less than $1,300,000.

It is greater than $1,300,000 and less than $1,400,000.

None of these answers are correct.

It is greater than $1,400,000 and less than $1,500,000.

It is greater than $800,000 and less than $900,000.

It is greater than $1,600,000 and less than $1,700,000.

 

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