Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year:
Utilities for the store $ 9,500
Sales commissions 10,000
Sales revenue 164,000
Purchases of merchandise 85,000
January 1 inventory 27,000
Rent for store 13,500
December 31 inventory 23,000
What is cost of goods sold?
A) $85,000
B) $89,000
C) $108,000
D) $112,000
B
Explanation: B) Calculations: $27,000 + 85,000 = $112,000 - $23,000 = $89,000
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