Precision Musical Instruments,merchandisers of Musical Instruments,has Provided the Following Details

question 234

Multiple Choice

Precision Musical Instruments,merchandisers of musical instruments,has provided the following details: $$\begin{array} { | l | l | r | } \hline \text { Mar. 5 } & \text { Inventory purchased on account } & \$ 775,000 \\\hline \text { Mar. 8 } & \text { Freight in } & 45,000 \\\hline \text { Mar. 13 } & \text { Purchase returns } & 50,000 \\\hline \text { Mar. 14 } & \text { Allowances by vendor } & 15,000 \\\hline & \text { Payment made to vendor for purchases on } & \\\text { Mar. 20 } & \text { March 5 } & ?\\\hline\end{array}$$ Credit terms are: 3/20,n/45,FOB shipping point.Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month.Assume that the perpetual inventory system is used.

• A) $760,000
• B) $732,350
• C) $710,000
• D) $733,700

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Definitions:

Competitive Market

A market structure characterized by the presence of many buyers and sellers, where no single entity can influence the market price significantly.

Wheat Farmer

An agriculturist specialized in the cultivation of wheat crops.

Marginal Cost

The increase in total production cost that arises from producing one additional unit of a good or service, providing insight into the cost mechanics of scaling up operations.

Competitive

A market characteristic where multiple firms or entities vie for customers, influencing prices, quality, and services in the process.