Assume the Perpetual Inventory Method Is Used

question 93

Multiple Choice

Assume the perpetual inventory method is used.
1) The company purchased $12,500 of merchandise on account under terms 2/10, n/30.
2) The company returned $1,200 of merchandise to the supplier before payment was made.
3) The liability was paid within the discount period.
"4) All of the merchandise purchased was sold for $18,800 cash.
The amount of gross margin from the four transactions is:"

• A) $5,100.
• B) $7,726.
• C) $6,550.
• D) $11,074.

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Definitions:

Parietal

Relating to the parietal lobes of the brain, which are involved in processing sensory information such as touch, temperature, and body position.

Temporal

Relating to time, or the sequential order in which events occur.

Occipital

Related to the occipital lobe of the brain, which mainly handles the processing of visual information.

Frontal

Pertaining to the frontal lobe of the brain, which is involved in executive functions such as decision-making, problem-solving, and control of behavior.