A Company That Uses the Perpetual Inventory Method Purchases Inventory

question 77

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 then returned $200 of damaged goods and got an allowance from the vendor.The company paid the vendor 8 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) $1,764
• B) $1,864
• C) $2,100
• D) $1,900

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Definitions:

Normal Saline

A solution of 0.9% sodium chloride (salt) in water, mirroring the salt concentration in blood and tissues, commonly used for intravenous hydration.

Acid PH

A measure of acidity or alkalinity, where a pH less than 7 indicates an acidic substance.

Sensory Organ

An organ of the body responsible for receiving and processing sensory information, such as the eyes, ears, skin, nose, and tongue.

Sutures

Threads or stitches used by surgeons to close cuts or wounds in the skin or tissues, promoting healing and minimizing infection risk.