Wright Company Recently Made a $10,000 Purchase from a Major

question 178

Multiple Choice

Wright Company recently made a $10,000 purchase from a major supplier. Shipping costs were $200, terms FOB shipping point. To record this purchase, Wright Company will need to debit the

• A) Merchandise Inventory account for $10,000.
• B) Cost of Goods Sold account for $200.
• C) Merchandise Inventory account for $10,200.
• D) Cost of Goods Sold account for $10,200.

---

Definitions:

Intent

The intended purpose or goal of an action, especially in a contract.

Affirmation

A positive statement or declaration, often used in the context of legal oaths.

In Pari Delicto

In equal fault.

Illegal Agreement

A contract or agreement that is not enforceable by law because it involves activities that are against the law or public policy.