The Financial Statements for Warren Company Show the Following Based on This Information, Cash Paid for Merchandise Was
A)

question 85

Multiple Choice

The financial statements for Warren Company show the following:
Cost of goods sold $725,000
$\begin{array}{|l|l|l|}\hline & \text { Begiuning Balance } &\text { Eurling Bnlance }\\\hline \text { Merchandise Inventory } & \$ 45,000&\$56,000 \\\hline \text { Accounts Receivable } & 53,000 &50,000\\\hline \text { Accounts Payable } & 37,000&42,000\\\hline \end{array}$
Based on this information, cash paid for merchandise was

• A) $736,000
• B) $719,000
• C) $731,000
• D) $741,000

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Definitions:

Indorsement

A signature or instruction written on the back of a negotiable instrument, such as a check, that specifies the terms of the transfer.

Negotiated

Discussed or bargained to reach a specific agreement or settlement, often involving adjustments to original terms.

Collecting Agent

An entity or individual appointed to gather or receive payments or debts on behalf of another party.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership or to approve its terms.