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:

Seeds

The reproductive unit of many plants, capable of developing into another such plant.

Fruits

The seed-bearing structures in flowering plants formed from the ovary after flowering.

Cytoplasmic Division

This refers to the process during cell division where the cytoplasm of a single eukaryotic cell is divided into two daughter cells.

Megaspore

A large spore that develops into a female gametophyte in plant species that have alternation of generations, like ferns and flowering plants.