Reyes Company, a retail supplier of auto parts, purchased $30,000 of inventory on credit from Rock Auto. Credit terms offered on the transaction were a 2 percent discount if paid in 15 days or less or the net amount due in 60 days. Reyes paid for the purchase within the discount period. How much did Reyes pay for the inventory?   A. $30,600 B. $29,400 C. $30,000 D. $24,000

Q: What is the entry to record the transaction on Kiner's books?

A: When a company purchased inventory in cash the inventory account will be debited and cash account…

Q: On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase…

A: The net method of accounting in the case of purchase records the purchase and accounts payable with…

Q: 16.0n October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half…

A: Under gross method, sales are recorded at Full value. Under Net method, sales are recorded at…

Q: Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10 n/40. What…

A: The correct answer is $4,900.

Q: 8. A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350.…

A: In this question, we will find out the total amount paid for merchandise.

Q: Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment…

A: credit terms: 3/10 - means 3% discount given if payment is made within 10 days

Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…

A: Formula: Discount amount = Invoice amount x Discount rate

Q: A company purchased $9,700 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it…

A: Step 1:Computation of the amount due for merchandise purchase on payment date i.e. June 24:Amount…

Q: Princess Jewelry purchased $7,000 of inventory on credit from Wholesale Jewelry on February 2. The…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: XYZ Company purchased inventory worth $50,000 on credit terms of 2/10, n/30. Calculate the amount…

A: The discount period refers to a specific timeframe during which a buyer can avail themselves of a…

Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…

A: Formula: Discount amount = Invoice amount x Discount rate.

Q: Boeing Truck Company received an invoice showing 12 tires at $114 each, 15 tires at $157 each, and…

A: An account payable is defined as the amount a business owed for purchases they made on credit. they…

Q: A retailer purchases some merchandise with an invoice price of $19,900 and terms of sale of 5/15,…

A: Discount on sales value: When the customer pays the amount within discount period then customer is…

Q: A company purchased $3,400 worth of merchandise. Transportation costs for the buyer were an…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: Record these business transactions in debit and credit format a) The Company purchased Inventory on…

A: Allowance for doubtful account is created to record bad debt under allowance method, and it is a…

Q: Shaw Company purchased 2000 units of a merchandise (called XOM) at $10 per unit from Reynold Company…

A: The discount period is the time spam within which the creditor would require to pay the amount to…

Q: Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was…

A: Contributed capital means the owners' contributions to the firm, This is an essential part of an…

Q: Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American…

A: If the payment is made within discount period, the discount canbbe availed as per the terms and…

Q: 16.Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is…

A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…

Q: What amount should Norfolk debit to the merchandise inventory account (Round your answer to the…

A: Answer:   Option a.

Q: Swisher Company sold inventory with a selling price of $5,000 to customers for cash.It also…

A: To record Sales Tax received from customer,  Debit cash account account Credit sales revenue account…

Q: Mahan Company purchased inventory on account under terms 2/10, n/30. Mahan would like to pay the…

A: calculation of maximum annual interest rate to be borrowed to settle account payable are as follows

Q: Riverbed Company sold $76000 worth of goods on account to Bramble Inc. on June 20. Riverbed marks…

A: Markup is the value that  is  added  to the cost price of a product. The value added is referred to…

Q: Maggie's Market recorded the following events involving a recent purchase of merchandise: Received…

A: Inventory is the amount of stock that an entity has for the purpose of selling. It is reported in…

Q: An item was shipped from a supplier under FOB shipping point. The invoice in the amount of $2,000…

A: Cost of inventory is the cost which is incurred on the buying of the inventory. It even includes…

Q: Funky Dance sold inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000. How much…

A: Formula: Sales revenue to be recorded =Sales value - sales discount

Q: Tony's Market recorded the following events involving a recent purchase of merchandise: Received…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: Sara’s Market recorded the following events involving a recent purchase of merchandise: Received…

A: The purchase of merchandise is recorded at the cost less return less discount plus freight paid.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.