A Company That Uses the Perpetual Inventory Method Purchases Inventory

question 21

Multiple Choice

A company that uses the perpetual inventory method purchases inventory for $2,000 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid the shipper $100 cash for freight in.
-The company paid the vendor 9 days after the sale.Assuming this was the only transaction affecting inventory,and that there was no beginning balance,what would the cost basis of the inventory be?

• A) $1,960
• B) $2,000
• C) $2,060
• D) $2,100

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