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:

Cholecystectomy

Cholecystectomy is a surgical procedure to remove the gallbladder, often due to gallstones causing pain or infection.

Choledochotomy

A surgical incision into the common bile duct, often performed to remove gallstones or to relieve bile duct obstruction.

Catabolism

The breakdown of complex molecules in living organisms to form simpler ones, together with the release of energy; destructive metabolism.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most of the end absorption of nutrients takes place.