Precision Musical Instruments, merchandisers of musical instruments, has provided the following details:Inventory purchased on account$775,00035,000Freight inPurchase returns50,00015,000?Mar 5Mar. 8Mar. 13Mar. 14Allowances by vendorMar. 20 Payment made to vendor for purchases on March 5Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that theperpetual inventory system is used.OA. $760,000OB. $710,000OC. $715,200OD. $716,600m

Net cost of inventory purchased=Purchase cost-Purchase returns-Allowance by vendor×100%-Purchase…

Precision Musical Instruments, merchandisers of musical instruments, has provided the following details: Mar. 5 Inventory purchased on account Mar. 8 Freight in Purchase returns Allowances by vendor Payment made to vendor for purchases on March 5 Mar. 13 Mar. 14 Mar. 20 $775,000 35,000 50,000 15,000 ? Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used. OA $760,000 OB. $710,000 OC. $715,200 OD. $716,600 CHILD

Precision Musical Instruments, merchandisers of musical instruments, has provided the following details: Mar. 5 Inventory purchased on account Mar. 8 Freight in Purchase returns Allowances by vendor Payment made to vendor for purchases on March 5 Mar. 13 Mar. 14 Mar. 20 $775,000 35,000 50,000 15,000 ? Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used. OA $760,000 OB. $710,000 OC. $715,200 OD. $716,600 CHILD

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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