A Company Purchased Inventory for $2,500 from a Vendor on Account,FOB

question 208

Multiple Choice

A company purchased inventory for $2,500 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid the shipper $200 cash for freight in.The company then returned damaged goods worth $400.The invoice was then paid eight days after the invoice date.Assuming that there was no beginning inventory balance,the cost of inventory would be ________.(Assume a perpetual inventory system. )

• A)$2,058
• B)$2,258
• C)$2,300
• D)$2,450