A company purchases inventory for 10000 with terms

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A company purchases inventory for $10,000, with terms 3/10, n/30. The company uses aperpetual system and the net method to record purchases. To record this transaction, thecompany debits the Inventory account for $9,970. Which of the following statements is correct? A) The company should instead credit Inventory.B) The company should instead debit Purchases.C) The recorded amount should instead be $9,700.D) Two of the other answers are correct.Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:Skis Boots Apparel SuppliesSelling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 ACCT 301 Quiz 3 full solution - answers-complete-solutions
Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 %In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at: Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for sales discounts.What entry would Oswego make on April 12? Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: ACCT 301 Quiz 3 full solution - answers-complete-solutions
Skis Boots Apparel SuppliesSelling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 %In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at: Management adopts of policy of reporting all shipping costs (freight-in and freight-out) inan operating expense account—Shipping Expense—at the time those costs are incurred. The cost of the physical units sold are reported in the Cost of Goods Sold account at the time those units are sold. Management believes this policy better communicates its inventory decisions to financial statement users. Which of the following statements is correct? A) Management’s policy is not correct because the cost of inventory includes all costs necessary to get the inventory ready for sale.B) Management’s policy is not correct because freight-in should be expensed only when the inventory is sold.C) Management’s policy is not correct because the cost of freight-out represents a reduction of revenue, not an expense.D) Two of the other answers are correct.

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