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Cost of Goods Sold and the Periodic SystemHermani Company uses the periodic inventory system. Hermani started theperiod with $20,000 in inventory. The Company purchased an additional$25,000 of merchandise and returned $3,000 for a full credit.If Hermani's cost of goods sold during the period was $35,000, what must havebeen the total of the physical inventory count?$Next pagePrevious pageSave Answers

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Cost of Goods Sold and the Periodic System
Hermani Company uses the periodic inventory system. Hermani started the
period with $20,000 in inventory. The Company purchased an additional
$25,000 of merchandise and returned $3,000 for a full credit.
If Hermani's cost of goods sold during the period was $35,000, what must have
been the total of the physical inventory count?
$
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Cost of Goods Sold and the Periodic System Hermani Company uses the periodic inventory system. Hermani started the period with $20,000 in inventory. The Company purchased an additional $25,000 of merchandise and returned $3,000 for a full credit. If Hermani's cost of goods sold during the period was $35,000, what must have been the total of the physical inventory count? $ Next page Previous page Save Answers

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Step 1

A periodic inventory system is a system used to determine the inventory at the end of specific periods. It takes into account the actual count of inventory items. It does not provide real time data for managers as it uses old data from last updates.

Step 2

Net purchase= Purchases – Purchase return

                     = $25,000 - $3,000

                     = $22,000

Total goods available for sale= Beginning inventory + Net purchases

                                                = $20,000 + $22,000

         &...

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