Harder Corporation Uses the Perpetual Inventory Method

question 31

Multiple Choice

Harder Corporation uses the perpetual inventory method.On March 1, it purchased $30,000 of inventory, terms 2/10, n/30.On March 3, Harder returned goods that cost $3,000.On March 9, Harder paid the supplier.On March 9, Harder should credit

• A)purchase discounts for $600.
• B)inventory for $600.
• C)purchase discounts for $540.
• D)inventory for $540.

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Definitions:

Raw Ingredients

Basic and unprocessed materials used in the manufacture or production of goods.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into producing them, aiming to more accurately reflect the costs incurred.

Complexity-Related

Pertaining to factors or expenses that arise from the complexity of operations, products, or systems.

Size-Related

Refers to attributes or decisions that are affected by the scale or volume, such as adjustments in operational capacity or costs that vary with company size.