WAXS-D, Merchandisers of Musical Instruments, Has Provided the Following Details

question 54

Multiple Choice

WAXS-D, merchandisers of musical instruments, has provided the following details: $$\begin{array} { | l | l | r | } \hline \text { Mar.5 } & \text { Inventory purchased } & \$ 800,000 \\\hline \text { Mar. } 8 & \text { Freight In } & 40,000 \\\hline \text { Mar.13 } & \text { Purchase returns } & 60,000 \\\hline \text { Mar. } 14 & \text { Allowances by vendor } & 15,000 \\\hline \text { Mar. } 20 & \text { Payment made to vendor for purchases on March 5 } & ? \\\hline\end{array}$$ Credit terms are: 3/20, n/45, FOB shipping. Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month.

• A) $785,000
• B) $740,000
• C) $725,000
• D) $743,250

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