Rodriguez Company Had the Following Balances and Transactions During 2015

question 77

Multiple Choice

Rodriguez Company had the following balances and transactions during 2015: What would the Ending Merchandise Inventory amount be as reported on the balance sheet at December 31, 2015 if the perpetual first-in, first-out costing method is used?

• A)$4,000
• B)$16,400
• C)$8,200
• D)$8,000

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Definitions:

Loan

A sum of money that is borrowed and is expected to be paid back with interest.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Negotiable

Capable of being transferred or sold with ease and having the ability to be converted into cash or equivalent.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount.