Glen Company Uses the Perpetual Inventory System

question 40

Multiple Choice

Glen Company uses the perpetual inventory system. The company entered into the following events:
1) Purchased merchandise inventory that cost $10,000 under terms of 2/10, n/30.
2) Made payment to the supplier within the discount period.
3) Sold all of the goods to customers on account for $22,000.

What is Glen's cost of goods sold as a result of these three transactions?

• A)$9,000
• B)$9,800
• C)$10,000
• D)$21,800

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Definitions:

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A chart that illustrates the connection between a product's price and the amount consumers are willing to buy, usually showing a decline as prices increase.

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