**Questions #21-23 are based on the information below:**Wicker Inc. has the following transactions during March:| Date | Transaction ||-------------|------------------------------------------------------------------|| March 3 | Purchases inventory on account for $3,500, terms 2/10, n/30. || March 5 | Pays freight costs of $200 on inventory purchased on March 3. || March 6 | Returns inventory with a cost of $500. || March 12 | Pays the full amount due to supplier. || March 29 | Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account. |**Questions:**21. On March 12, how much is the purchase discount? A. $60 B. $70 C. $56 D. $84 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

Purchase: It implies to the acquisition or buying of goods & services by the business for the routine production activities or in other words to generate the revenue. 21. Calculation of the purchase discount as on March 12, as follows: Result of the above: Therefore, the correct option is A. 22. Calculation of the cash paid on March 12, as follows: Result of the above: Therefore, the correct option is C.23. Cost of goods sold = Inventory purchased - Inventory returned = $3,500 - $500 = $3,000 Therefore, the correct option is B.

Business

Accounting

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

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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3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.
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