Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A business applies a uniform mark-up of $25\%$ to its goods. The information provided is as follows. sales revenue $120000$ opening inventory $18000$ purchases $95000$ returns outwards $2000$ What is the value of closing inventory?

  • A$15000
  • B$19000
  • C$21000
  • D$25000

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