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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