Northwest Fur Co

question 115

Multiple Choice

Northwest Fur Co. started 2018 with $94,000 of merchandise inventory on hand. During 2018, $400,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a perpetual inventory system.
-What is ending inventory assuming Northwest uses the gross method to record purchases?

• A) $112,490.
• B) $112,550.
• C) $116,500.
• D) $120,300.

Understand the principles governing the award of damages in contract law.

Differentiate between equitable remedies and damages.

Explain the concept of specific performance and under what circumstances it is granted.

Understand how contract terms can limit or specify remedies for breach.

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Definitions:

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Freeze Point

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