A Company Purchased Inventory for $71,000 from a Vendor on Account,FOB

question 73

Multiple Choice

A company purchased inventory for $71,000 from a vendor on account,FOB shipping point,with terms of 3/10,n/30.The company paid the shipper $1,700 cash for freight in.The company paid the vendor nine days after the invoice date.If there was no beginning inventory,the cost of inventory would be ________.(Assume a perpetual inventory system.)

• A) $70,570
• B) $72,700
• C) $67,170
• D) $69,300

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Definitions:

Perception

The process by which individuals interpret sensory information to give meaning to their environment.

Haptic Senses

The perception of touch and sensation through skin, muscles, tendons, and joints, enabling the ability to feel physical objects.

Perceptual Process

The series of steps that begins with stimuli in the environment and leads to the perception of that stimulus, involving selection, organization, and interpretation of sensory input.

Exposure

refers to the state of being subject to an influencing factor or environment, often relating to the amount of light in photography, the spread of disease, or the risk factor in finance.