Simmons,Inc

question 140

Multiple Choice

Simmons,Inc.received an invoice from Wilson Company for $5,550 with terms of 3/10,n/45 on March 8.If Simmons pays the bill on March 15,they will credit inventory under a perpetual inventory system for:

• A)$0.00.
• B)$555.00.
• C)$166.50.
• D)$5550.00.

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Definitions:

Elastic

Describes a situation in which the supply or demand for a good or service is highly responsive to changes in price.

Good Substitutes

Products or services that can be used in place of one another, where the increase in price of one leads to an increase in demand for the other.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Total Expenditures

The sum of all spending or costs incurred by an individual, firm, or government.