(Learning Objective 2: Calculate purchases by analyzing inventory account activity)On Willow Grove Department Stores’ most recent balance sheet, the balance of its inventory at the beginning of the year was $12,000. At the end of the year, the inventory balancewas $14,500. During that year, its cost of goods sold was $55,000. All purchases of inventorythroughout the year were on account. What was the total of Willow Grove’s purchases duringthe year?

Question

(Learning Objective 2: Calculate purchases by analyzing inventory account activity)
On Willow Grove Department Stores’ most recent balance sheet, the balance of its inventory at the beginning of the year was $12,000. At the end of the year, the inventory balance
was $14,500. During that year, its cost of goods sold was $55,000. All purchases of inventory
throughout the year were on account. What was the total of Willow Grove’s purchases during
the year?

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