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.

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Definitions:

Evaluation Phase

A stage in the product development process where the performance and feasibility of a product are assessed.

Forecasting

The process of making predictions based on past and present data and analyzing trends to guide future decision-making.

Hierarchy of Effects

A concept in marketing and advertising that outlines the steps a consumer goes through, from first becoming aware of a product to making the purchase decision.

Interest Stage

A phase in the consumer buying process where potential customers develop an interest in a product or service after becoming aware of it.