A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 2

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $25,000 on account with terms of 2/10, n/30. Defective inventory of $2,000 was returned 2 days later and the accounts were appropriately adjusted. If the invoice is paid within 10 days, the amount of the purchase discount that would be available to the company is:

• A)$460.
• B)$540.
• C)$500.
• D)$490.

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Definitions:

Purchasing Power

The financial ability to buy goods and services, often reflecting the effect of inflation and the relative cost of living.

Nonmonetary Job Considerations

Aspects of a job that affect an employee's satisfaction and decision to work beyond the financial compensation, such as workplace culture, job security, and opportunities for personal growth.

Law School

An educational institution specializing in the study of law and the training of future lawyers.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).