MoCo begins operation in April, uses the perpetual method, and records merchandise purchases at net. MoCo makes two purchases on account. Terms are 1/15, n/45. On April 4, MoCo purchases merchandise for $3,000 which it pays for in April 16, On April 11, it makes a $9,000 purchase that it pays for on April 29, but there are no sales in April. On April 30, the balance in MoCo’s inventory ledger account is…

a. $12,000 

b. $11,970

c. $11,880

d.$11,910

Answer rating: 100% (QA)

Terms 115 n45 means that if the payment is made within 15 days then 1 discount can be attained on pu... View the full answer