A Company Purchased Inventory for $75,000 from a Vendor on Account

question 140

Multiple Choice

A company purchased inventory for $75,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor 9 days after the sale. If there was no beginning inventory, the cost of inventory would be: (Assume a perpetual inventory system)

• A)$74,250.
• B)$76,500.
• C)$71,295.
• D)$73,500.

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Definitions:

Tibiotalar

Referring to the joint formed between the tibia (shinbone) and the talus (ankle bone), crucial for ankle movement.

Tarsometatarsal

Referring to the joint connections between the tarsal bones of the foot and the metatarsal bones of the forefoot.

Temporomandibular Joint

The joint connecting the jawbone to the skull, facilitating movements for chewing and speaking.

Articulation

Articulation is the physical production of speech sounds or the joining together of bones at a joint, facilitating movement.