A company using the periodic inventory system has merchandise inventory costing $210 on hand at the beginning of a period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

A) $795
B) $685
C) $265
D) $635

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, usually at the end of a financial reporting period, rather than after each transaction.

Merchandise Inventory

The total value of a company's goods that are available for sale, including raw materials, work-in-progress, and finished goods.

Cost Of Merchandise Sold

The total cost to a business of the goods sold to customers, including purchase price and additional expenses related to the sale.