Tedder Co
Tedder Uses a Periodic Inventory System -Refer to the Information Provided in the Figure Tedder Co

question 19

Short Answer

Tedder Co.
Tedder uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January:
$$\begin{array} { l l c l } \text { Jan. } 1 & \text { Beginning inventory: } 10 \text { units at \$2 each } & \$ 20 \\20 & \text { Purchased } 90 \text { units for } \$ 3 \text { each } & 270 & \\& { \text { Cost of goods available for sale } } & \$ 290\end{array}$$
-Refer to the information provided in the figure Tedder Co.Which of the following entries correctly records the purchase,assuming the units were acquired on credit under terms of 2/10,n/30? a.
$\begin{array} { l l } \text { Inventory } & 270.00 \\\text { Cash } &&{ 270.00 } \\\end{array}$

b.
$\begin{array} { l l } \text { Inventory } & 270.00 \\\text { Accounts Payable } && { 270.00 } \\\end{array}$

c.
$\begin{array} { l l } \text { c. Purchases } & 264.60 \\\text { Purchase Discounts }&5.40 \\\text { Accounts Payable }&&270.00\end{array}$

d.
$\begin{array} { l l } \text { Purchases } & { 270.00 } \\\text { Accounts Payable } && 270.00 \\\end{array}$