A Company Purchased Inventory for $2,000 from a Vendor on Account,FOB

question 84

Multiple Choice

A company purchased inventory for $2,000 from a vendor on account,FOB shipping point,with terms of 3/10,n/30.The company paid the shipper $300 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) $1,552
• B) $1,852
• C) $1,700
• D) $1,940

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Definitions:

Biotic Pollution

The negative impact on ecosystems and native species caused by the introduction and spread of invasive organisms.

In Situ Conservation

Conservation efforts that concentrate on preserving biological diversity in the wild.

Greenhouse Gas Accumulation

The build-up of greenhouse gases in the Earth's atmosphere, contributing to global warming and climate change.

Endangered Species Act

A law enacted to protect critically endangered species from extinction as a consequence of economic growth and development untempered by adequate concern and conservation.