Precision Musical Instruments, Merchandisers of Musical Instruments, Has Provided the Following

question 122

Multiple Choice

Precision Musical Instruments, merchandisers of musical instruments, has provided the following details: $$\begin{array} { | l | l | r | } \hline \text { Mar. 5 } & \text { Inventory purchased on account } & \$ 800,000 \\\hline \text { Mar. 8 } & \text { Freight in } & 30,000 \\\hline \text { Mar. 13 } & \text { Purchase returns } & 60,000 \\\hline \text { Mar. 14 } & \text { Allowances by vendor } & 10,000 \\\hline \text { Mar. 20 } & \text { Payment made to vendor for purchases on March 5 } & ? \\\hline\end{array}$$ Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used.

• A) $790,000
• B) $729,600
• C) $730,000
• D) $730,800

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Definitions:

Environment In Adaptation

The process whereby organisms adjust to changes in their surroundings or habitat to enhance survival and reproduction.

Types Of Reciprocity

Describes different forms of exchanging goods, services, or favours among individuals or groups, including balanced, generalized, and negative reciprocity, each with its own expectations and norms.

Marketable Commodities

Goods or products that can be bought, sold, or traded in a market.

Government Regulation

A set of rules or laws designed by government bodies to control or direct the actions of individuals, businesses, or other entities within society.