Northwest Fur Co. started the year with $96,000 of merchandise inventory on hand. During the year, $445,000 in merchandise was purchased on account with credit terms of 1/15, n/45All discounts were taken. Northwest paid freight-in charges of $7,000. Merchandise with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was$379,000. What is ending inventory?Multiple Choice$66,000$159,996$164,400$163,991. Consider the following information pertaining to OldWest's inventory:NetRealizableQuantityProductValueCost$127$15513Revolvers212621Spurs125949HatsAt what amount should OldWest report its inventory?Multiple Choice$2,905$3,044.$2,680.$2,778.

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Asked Sep 28, 2019
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Northwest Fur Co. started the year with $96,000 of merchandise inventory on hand. During the year, $445,000 in merchandise was purchased on account with credit terms of 1/15, n/45
All discounts were taken. Northwest paid freight-in charges of $7,000. Merchandise with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was
$379,000. What is ending inventory?
Multiple Choice
$66,000
$159,996
$164,400
$163,991.
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Northwest Fur Co. started the year with $96,000 of merchandise inventory on hand. During the year, $445,000 in merchandise was purchased on account with credit terms of 1/15, n/45 All discounts were taken. Northwest paid freight-in charges of $7,000. Merchandise with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was $379,000. What is ending inventory? Multiple Choice $66,000 $159,996 $164,400 $163,991.

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Consider the following information pertaining to OldWest's inventory:
Net
Realizable
Quantity
Product
Value
Cost
$127
$155
13
Revolvers
21
26
21
Spurs
12
59
49
Hats
At what amount should OldWest report its inventory?
Multiple Choice
$2,905
$3,044.
$2,680.
$2,778.
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Consider the following information pertaining to OldWest's inventory: Net Realizable Quantity Product Value Cost $127 $155 13 Revolvers 21 26 21 Spurs 12 59 49 Hats At what amount should OldWest report its inventory? Multiple Choice $2,905 $3,044. $2,680. $2,778.

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Expert Answer

Step 1

We’ll answer the first question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered

Step 2

The Opening Inventory is added to net Purchases i.e. total purchases less returns and discounts to arrive at the total inventory available for sale in the period. When the cost of goods sold during the period is subtracted from the total inventory availble for sale, we arrive at the closing inventory or the inventory remaining to be sold at the end of the period.

The credit term 1/15 days,n/15 days implies that...

$
Opening Inventory
Purchases (a)
less returns (b)
Net Invoice value of merchandise
purchase c= (a-b)
less discount @1% on 440400 (d)
Add. Freight (e)
|net Invoice value of merchandise
purchase c= (a-b)
Total Inventory available for sale
(opening inventory purchases net of
|discount and returns
less. Cost of goods sold
Closing Inventory
96,000
445,000
-4600
440,400
-4404
7000
442,996
538,996
-379000
159,996
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$ Opening Inventory Purchases (a) less returns (b) Net Invoice value of merchandise purchase c= (a-b) less discount @1% on 440400 (d) Add. Freight (e) |net Invoice value of merchandise purchase c= (a-b) Total Inventory available for sale (opening inventory purchases net of |discount and returns less. Cost of goods sold Closing Inventory 96,000 445,000 -4600 440,400 -4404 7000 442,996 538,996 -379000 159,996

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