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:

Bearish

A term used to describe the expectation that a particular security, market, or economy will experience a decline in value.

TRIN

The TRIN, or Trading Index, measures market breadth by dividing the advance/decline ratio by the advance/decline volume ratio.

Bullish

A term used to describe investor optimism about the market or a particular stock, expecting prices to rise.

Bearish

Pertaining to or indicating negative expectations for a particular market, security, or economy, expecting prices to fall.