Questions # 21-23 are based on the information below: Wicker Inc. has the following transactions during March: March 3 March 5 March 6 March 12 March 29 Purchases inventory on account for $3,500, terms 2/10, n/30. Pays freight costs of $200 on inventory purchased on March 3. Returns inventory with a cost of $500. A. $60 B. $70 C. $56 D. $84 Pays the full amount due to supplier. Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account. 21. On March 12, how much is the purchase discount? 22. How much cash does Wicker pay to the supplier on March 12? A. $2,936 B. $2,930 C. $2,940 D. $3,000
Questions # 21-23 are based on the information below: Wicker Inc. has the following transactions during March: March 3 March 5 March 6 March 12 March 29 Purchases inventory on account for $3,500, terms 2/10, n/30. Pays freight costs of $200 on inventory purchased on March 3. Returns inventory with a cost of $500. A. $60 B. $70 C. $56 D. $84 Pays the full amount due to supplier. Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account. 21. On March 12, how much is the purchase discount? 22. How much cash does Wicker pay to the supplier on March 12? A. $2,936 B. $2,930 C. $2,940 D. $3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Questions # 21-23 are based on the information below:
Wicker Inc. has the following transactions during March:
March 3
March 5
March 6
March 12
March 29
Purchases inventory on account for $3,500, terms 2/10, n/30.
Pays freight costs of $200 on inventory purchased on March 3.
Returns inventory with a cost of $500.
A. $60
B. $70
C. $56
D. $84
Pays the full amount due to supplier.
Sells all inventory purchased on March 3 (less those returned on March 6)
for $5,000 on account.
21. On March 12, how much is the purchase discount?
22. How much cash does Wicker pay to the supplier on March 12?
A. $2,936
B. $2,930
C. $2,940
D. $3,000
23. How much will Wicker record as cost of goods sold on March 30?
A. $5,000
B. $3,000
C. $3,200
D. $3,140](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee9abd16-de5a-473f-9ef0-b39753a1a4c9%2F974506a1-910b-4999-b047-2ce40370a835%2Fc8ndj7_processed.png&w=3840&q=75)
Transcribed Image Text:Questions # 21-23 are based on the information below:
Wicker Inc. has the following transactions during March:
March 3
March 5
March 6
March 12
March 29
Purchases inventory on account for $3,500, terms 2/10, n/30.
Pays freight costs of $200 on inventory purchased on March 3.
Returns inventory with a cost of $500.
A. $60
B. $70
C. $56
D. $84
Pays the full amount due to supplier.
Sells all inventory purchased on March 3 (less those returned on March 6)
for $5,000 on account.
21. On March 12, how much is the purchase discount?
22. How much cash does Wicker pay to the supplier on March 12?
A. $2,936
B. $2,930
C. $2,940
D. $3,000
23. How much will Wicker record as cost of goods sold on March 30?
A. $5,000
B. $3,000
C. $3,200
D. $3,140
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