Northwest Fur Company started 2024 with $101,000 of inventory on hand. During 2024, $510,000 in inventory was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,500. Inventory with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was $375,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Options are A)238,846 B)234,786 C)239,900 D)244,500
Northwest Fur Company started 2024 with $101,000 of inventory on hand. During 2024, $510,000 in inventory was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,500. Inventory with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was $375,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Options are A)238,846 B)234,786 C)239,900 D)244,500
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
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Northwest Fur Company started 2024 with $101,000 of inventory on hand. During 2024, $510,000 in inventory was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,500. Inventory with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was $375,000. Northwest uses a perpetual inventory system.
What is ending inventory assuming Northwest uses the gross method to record purchases?
Options are
A)238,846
B)234,786
C)239,900
D)244,500
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