A Company Purchased Inventory for $2,000 from a Vendor on Account

question 103

Multiple Choice

A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, n/30. The company paid the shipper $100 cash for freight in. The company then returned damaged goods worth $200. The invoice has been paid 8 days after the sale. Assuming that there was no beginning inventory balance, the cost of inventory would be: (Assume a perpetual inventory system)

• A)$1,764.
• B)$1,864.
• C)$2,100.
• D)$1,900.

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Definitions:

Foreign Aid

Financial, technical, or material assistance provided by one country to another, often aimed at promoting development or addressing humanitarian crises.

Social Order

The structured pattern of social relationships and rules that guide and constrain human behavior in a society, facilitating coexistence and cooperation among its members.

Foucault

Michel Foucault was a French philosopher, historian of ideas, social theorist, and literary critic, known for his influence on various fields such as sociology, critical theory, and cultural studies, particularly for his theories on power, knowledge, and discourse.

Global Economy

The worldwide interconnection of national economies through trade, investment, and capital flow.