On January 1, 2007, the Merchandise Inventory of Colaw, Inc

question 50

Multiple Choice

On January 1, 2007, the merchandise inventory of Colaw, Inc.was $800,000.During 2007 Colaw purchased $1,600,000 of merchandise and recorded sales of $2,000,000.The gross profit rate on these sales was 25%.What is the merchandise inventory of Colaw at December 31, 2007?

• A)$400,000.
• B)$500,000.
• C)$900,000.
• D)$1,500,000.

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Definitions:

Negotiation

Negotiation is a process of discussion aimed at reaching an agreement where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution.

Holder

A person in possession of a document of title or an instrument payable or indorsed to him, his order, or to bearer.

Indorsement

The act of signing one's name on the back of a negotiable instrument, such as a check, thereby transferring rights or ownership.

Misspelled

Incorrect spelling of a word.