The Bridal Gift Shop Company Has 12 Units in Ending

question 46

Multiple Choice

The Bridal Gift Shop Company has 12 units in ending merchandise inventory on December 31.The units were purchased in November for $150 each.The price lists from suppliers indicate the current replacement cost of the item to be $152 each.What would be the amount reported as Merchandise Inventory on the balance sheet?

• A) $1,800
• B) $3,624
• C) $302
• D) $1,824

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Definitions:

Compounded Annually

Interest calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

Interest on an investment or loan calculated and added to the principal balance monthly, where each month's interest calculation includes the previous month's interest.

Deferred Annuity

A financial security provided by insurers that holds back the distribution of income, either through regular installments or a one-time sum, until it's opted for by the investor.

Ordinary Annuity

A series of equal payments made at regular intervals, with the first payment occurring at the end of the period.