Answer:
B. $460,000
Explanation:
The computation of the cost of goods sold using the periodic inventory system is shown below:
Beginning Inventory $175,000
Add: Purchases $500,000
Add: Freight In $17,000
Less: Purchase Returns and allowances -$60,000
Less: Purchase Discounts -$12,000
Cost of goods available for sale $620,000
Less: Ending Inventory -$160,000
Cost of goods sold $460,000
We simply applied the above format to determine the cost of goods sold
