the records for uptown pet shop showed the following: sales $75,000 beginning merchandise inventory $10,000…

the records for uptown pet shop showed the following: sales $75,000 beginning merchandise inventory $10,000 purchases 45,000 cost of goods sold 50,000 what was the ending merchandise inventory? $5,000 $15,000 $25,000 $40,000 none of the above

the records for uptown pet shop showed the following: sales $75,000 beginning merchandise inventory $10,000 purchases 45,000 cost of goods sold 50,000 what was the ending merchandise inventory? $5,000 $15,000 $25,000 $40,000 none of the above

Answer

Explanation:

Step1: Recall inventory formula

Ending inventory = Beginning inventory + Purchases - Cost of goods sold

Step2: Substitute given values

Ending inventory = $10000 + 45000-50000$

Step3: Calculate result

Ending inventory = $55000 - 50000=5000$

Answer:

$5,000$