Northwest Fur Company started 2024 with $95,000 of inventory on hand. During 2024, $430,000 in inventory was purchased on account with credit terms of 2/15 "/4s. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,700. Inventory with an invoice amount of $4,700 was returned for credit. Cost of goods sold for the year was $377,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Multiple Choice O C $143,494 $156,700 $143,434 $152,000
Northwest Fur Company started 2024 with $95,000 of inventory on hand. During 2024, $430,000 in inventory was purchased on account with credit terms of 2/15 "/4s. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,700. Inventory with an invoice amount of $4,700 was returned for credit. Cost of goods sold for the year was $377,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Multiple Choice O C $143,494 $156,700 $143,434 $152,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Northwest Fur Company started 2024 with $95,000 of inventory on hand. During 2024, $430,000 in inventory was purchased on account with credit terms of 2/15. "/4s All discounts were
taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,700. Inventory with an invoice amount of $4,700 was returned for credit. Cost of goods sold for the
year was $377,000. Northwest uses a perpetual inventory system.
What is ending inventory assuming Northwest uses the gross method to record purchases?
Multiple Choice
О
$143,494
$156,700
$143,434
$152,000
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