Table 5-5
the Following Items Were Taken from the December

question 141

Multiple Choice

Table 5-5
The following items were taken from the December 31, 2019, records of Speedy Boat Company, which uses a periodic inventory system: $$\begin{array} { | l | r | } \hline \text { Salary payable } & \$ 1,100 \\\hline \text { Sales revenue } & 480,000 \\\hline \text { Interest revenue } & 3,000 \\\hline \text { Freight in } & 20,000 \\\hline \text { Beginning inventory } & 35,000 \\\hline \text { Sales discounts } & 18,000 \\\hline \text { Purchases of inventory } & 240,000 \\\hline \text { Purchase retarns and allowances } & 35,000 \\\hline \text { Purchase discounts } & 10,000 \\\hline \text { Sales returns and allowances } & 35,000 \\\hline \text { Ending inventory } & 80,000 \\\hline \text { Operating expenses } & 85,000 \\\hline \text { Interest expense } & 7,000 \\\hline \text { Owner withdrawals } & 12,000 \\\hline\end{array}$$
-Refer to Table 5-5. The net purchases for Speedy Boat Company are:

• A)$230,000.
• B)$195,000.
• C)$240,000.
• D)$205,000.

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Definitions:

Cognitive Moral Development

A theory by Lawrence Kohlberg that explains the stages individuals pass through as they develop in moral reasoning.

Handle Situations Ethically

Approaching and resolving scenarios with moral principles, often considering fairness, honesty, and respect for others.

Hurt Companies

Companies that have been significantly impacted or damaged by internal problems, market conditions, or external events, affecting their performance and stability.

Displaying Ethical Behavior

The practice of consistently demonstrating honesty, integrity, fairness, and respect in one's decisions and actions.