At December 31, 2007, the Following Information Was Available from Dole

question 74

Multiple Choice

At December 31, 2007, the following information was available from Dole Co.'s accounting records: $\begin{array}{lrr}&\text { Cost }& \text { Retail }\\\text { Inventory, 1/1/07 } & \$ 147,000 & \$ 203,000 \\\text { Purchases } & 833,000 & 1,155,000 \\\text { Additional markups } & & 42,000 \\\text { Available for sale } & \$ 980,000 & \$ 1,400,000\end{array}$ Sales for the year totaled $1,050,000.Markdowns amounted to $10,000.Under the lower-of-cost-or-market method, Dole's inventory at December 31, 2007 was

• A)$294,000.
• B)$245,000.
• C)$252,000.
• D)$238,000.

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Definitions:

Credit Period

The timespan during which a buyer can purchase goods or services on account, without incurring interest charges.

Account Size

Refers to the total value of an individual's or entity's investments held within a single account.

Normal Credit Period

A standard duration agreed upon in business transactions, during which a buyer can pay the seller for goods or services without penalty.

Optimal Amount of Credit

The ideal level of borrowing that achieves a balance between the benefits and costs of debt financing.