A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of
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A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, n/30. The company paid the shipper $100 cash for freight in. The company then returned damaged goods worth $200. The invoice has been paid 8 days after the sale. Assuming that there was no beginning inventory balance, the cost of inventory would be: (Assume a perpetual inventory system)
i) $2,100
ii) $1,764
iii) $1,900
iv) $1,864
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The right answer is the option iv iv 1864 Purchase price of Inventory 2000 Less Purchase Ret...View the full answer
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Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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