A company purchased inventory for $3,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper $300 cash for freight in. The company then returned damaged goods worth $300
The invoice was then paid eight days after the purchase. Assuming that there was no beginning inventory balance, the cost of inventory would be ________. (Assume a perpetual inventory system.)
A) $2,619
B) $2,919
C) $2,700
D) $2,910
B .Cost of Purchase $3,000
Less: Purchase Returns 300
Less: Purchase Discount 81
Plus: Freight In 300
Net Cost of Inventory Purchased $2,919
You might also like to view...
Businesses now use social media sites to recruit employees
Indicate whether the statement is true or false
A homestead exemption allows a debtor to subtract the value of the family home from the amount of a debt
a. True b. False Indicate whether the statement is true or false
How can marketers use sentiment analysis?
a. To obtain insight into the mix of features people want, and the product’s strengths and weaknesses. b. To indicate perceptions of the company in terms of product quality, service quality, performance, and value. c. To systematically utilize reviews when making purchase decisions. d. A & B only. e. All of these.
A(n) ____________________ is a fixed gross amount of pay, equally distributed over periodic payments, without regard to the number of hours worked
Fill in the blank(s) with correct word