Auto Parts Company Uses a Periodic Inventory System A) $26,300
B) $21,700
C) $24,700
D) $23,200

question 1

Multiple Choice

Auto Parts Company uses a periodic inventory system.Use the following details to calculate net purchases. $$\begin{array} { | l | r | } \hline \text { Beginning merchandise } & \\\text { inventory } & \$ 3,000 \\\hline \text { Ending merchandise inventory } & 2,200 \\\hline \text { Purchases } & 24,000 \\\hline \text { Purchase Discounts } & 800 \\\hline \text { Purchase Returns and } &\\\text { Allowances } & 1,500 \\\hline \text { Freight In } & 4,000 \\\hline\end{array}$$

• A) $26,300
• B) $21,700
• C) $24,700
• D) $23,200

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Definitions:

Cumulative

A term referring to an attribute of financial items (like dividends) that accumulate over time until they are paid or settled.

Preferred Stock

A class of stock with preferential rights over common stock, often including fixed dividends and priority in assets upon liquidation.

Noncash Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as property, plant, and equipment.

Par Value

This term describes the nominal or face value of a bond, stock, or coupon as stated by the issuer, often used in the context of bonds and shares.