A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 117

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $20,000 on account with terms of 3/10,n/30.Defective inventory of $2,000 was returned two days later,and the accounts were appropriately adjusted.If the invoice is paid 10 days after the invoice date,the amount of the purchase discount that would be available to the company is ________.

• A) $540
• B) $660
• C) $600
• D) $590

Explain the commons dilemma and how communication affects group behavior.

Identify factors that influence group decision-making, including the presence of a strong, directive leader and self-censorship.

Understand the impact of diverse opinions and independent thinking on group effectiveness ("wisdom of crowds").

Recognize behavioral contagion in groups, exemplified by the "bad apple" effect.

---

Definitions:

Costing Method

An accounting approach used to value inventory and determine the cost of goods sold, which can vary, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Cost of Goods Sold

The direct costs tied to the production of the goods sold by a company, including materials and labor.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, crucial for calculating the cost of goods sold.