Riverview Software began January with 3900 of merchandise in

Riverview Software began January with $3,900 of merchandise inventory. During January, Riverview made the following entries for its inventory transactions: Click the icon to view the transactions.) ow much was Riverview\'s inventory at the end of January? Data Table O A. $5,100 ??. $-0- O c. $6,500 O D. $10,400 Inventory 6,500 Accounts Payable 6,500 Accounts Receivable 7,300 Sales Revenue 7,300 Cost of Goods Sold 5,300 nventory 5,300 Print Done

Solution

Closing Inventory = Opening Inventory + Purchases - Cost of goods sold

Closing Inventory = 3900 + 6500 - 5300 = $5100.

Note: Sale value should not be considered for closing stock valuation. Only cost of goods sold should be reduced from opening Inventory and Purchases to arrive at closing stock.

Hence the closing Inventory value = $5,100 (Option A).