A Company That Uses a Perpetual Inventory System Purchased $1,800

question 40

Multiple Choice

A company that uses a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the amount due. The amount of the discount lost by failing to pay within the discount period equals:

• A)$32.
• B)$36.
• C)$4.
• D)$40.
• E)$200.

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Definitions:

Primate

A member of the mammalian order Primates, which includes humans, apes, monkeys, and prosimians, characterized by large brains, forward-facing eyes, and opposable thumbs.

Impregnate

To fertilize an egg, causing it to develop into an embryo; in a broader sense, it can also mean to permeate or saturate something with a substance.

Gene-Environment Interaction

The complex interplay between genetic predispositions and environmental factors that influence the development and expression of traits and behaviors.

Biological Heritage

The genetic and physiological characteristics that individuals inherit from their ancestors.