Answer:
Purchases = $421,000
Explanation:
Sales for the month = $700,000
Cost of goods sold = 60 % of sales = $700,000 60% = $420,000
Opening inventory = $50,000
Closing Inventory = $51,000
We know,
Cost of goods sold = Opening + Purchases - Closing
$420,000 = $50,000 + Purchases - $51,000
$420,000 + $51,000 - $50,000 = Purchases = $421,000
<em><u>Options provided are invalid</u></em>
Purchases = $421,000