Question

Lutex Corporation began its accounting period with a merchandise inventory (beginning inventory) that cost $10,000. During the period, it purchased for resale merchandise with a retail value of $100,000. With purchase discounts, it paid only $80,000 for this merchandise. Thus, during this period, Lutex had ____ in goods available for sale.

Answer 1

Goods available for sale = $110,000

Step-by-step explanation:

Goods available for sale = $100,000 + 10,000

We are not using the $80,000 discounted price since the discount of $20,000 will be reported as income in the income statement.