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1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account? A. $29,400 B. $20,580 C. $21,000 D. $30,000   2. Who is responsible for the freight cost when the terms are FOB destination? A. the seller B. the buyer C. either the buyer or the seller D. the ultimate customer   3. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? A. specific identification

1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account? A. $29,400 B. $20,580 C. $21,000 D. $30,000   2. Who is responsible for the freight cost when the terms are FOB destination? A. the seller B. the buyer C. either the buyer or the seller D. the ultimate customer   3. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? A. specific identification

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Norfolk Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the Inventory account?
A. $29,400
B. $20,580
C. $21,000
D. $30,000
 
2. Who is responsible for the freight cost when the terms are FOB destination?
A. the seller
B. the buyer
C. either the buyer or the seller
D. the ultimate customer
 
3. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
A. specific identification
B. LIFO
C. average
D. FIFO
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