Ridge Retailers Inc. purchased inventory that had a list price of $15,000. The purchase was made under terms 3/10, net 30, FOB shipping point. Freight costs amounted to $400. Assuming Ridge Retailers paid cash for the inventory after the discount period, what was the cost of the inventory?

Ridge Retailers Inc. purchased inventory that had a list price of $15,000. The purchase was made under terms 3/10, net 30, FOB shipping point. Freight costs amounted to $400. Assuming Ridge Retailers paid cash for the inventory after the discount period, what was the cost of the inventory?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

See similar textbooks

Related questions

Q: Need Ans general Accounting

A: Step 1: Define Dividends PaidDividends are distributions of a company's net income to shareholders.…

Q: Determine wilkinson Ltd's operating leverage

A: Given Data:Contribution Margin = $472,000Income from Operations = $312,000Formula for Degree of…

Q: What was your percent return for this financial accounting question?

A: Step 1: Definition of Percent ReturnPercent return is a measure of the total gain or loss on an…

Q: Financial Accounting

A: Step 1: Define Tax LiabilityTax liability refers to the total amount of tax a company owes to the…

Q: help this final

A: To solve this problem, we'll break it down into two parts.Step 1: Calculate the operating…

Q: Hi expert please help me

A: To calculate the contribution margin ratio, we need to first calculate the contribution…

Q: expert of general account answer

A: Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique used to…

Q: Give me Answer

A: Solution: Materials Purchase Price Variance Calculation Step 1: Understanding the Purchase Price…

Q: Do fast answer of this accounting questions

A: Step 1: Calculation of current assetsNet working capital = Current assets - Current…

Q: can you please solve this

A: Step 1: Definition of Net IncomeNet Income is the company's total earnings after deducting all…

Q: Accurate Answer

A: Concept of Direct MaterialsDirect materials are the raw materials that are specifically and…

Q: hello tutor please help me

A: Approach to solving the question: Detailed explanation: Examples: Key references: Nursing

Q: expert of general accounting answer

A: Step 1: Definition of Pension ExpensePension expense refers to the cost recognized by a company for…

Q: Financial Accounting

A: Step 1: Calculation of total capital gainCapital gain per share = Ending price - Initial…

Q: Can you help me with accounting questions

A: Step 1: Definition of Raw Materials UsedRaw materials used refer to the amount of direct and…

Q: Accounting question

A: Step 1: Define Average Accounts Receivable BalanceAverage Accounts Receivable Balance represents the…

Q: Solve this Accounting problem

A: Calculation of the current Earnings per Share (EPS):Current EPS = Net Income / Number of Shares…

Q: correct answer please help me

A: Step 1: Definition of Net IncomeNet income is the profit a company earns after deducting all…

Q: Accurate answer

A: Explanation of Owner's Equity: Owner's equity represents the owner's financial stake or net worth in…

Q: General Accounting

A: Step 1: Define Percentage Increase in SalesThe percentage increase measures the growth in sales over…

Q: Direct materials used totaled $65,750; direct labor incurred totaled $199,400; manufacturing…

A: Step 1:First, calculate the total manufacturing cost: Total manufacturing cost = Direct material…

Q: Tutor please provide answer

A: Determine Maximum Contribution MarginSince 6,000 machine hours are available:If Product X is made:…

Q: Round to the nearest day

A: Step 1: The Cash Conversion Cycle (CCC) measures how long it takes a company to convert its…

Q: Need answer

A: Explanation of Unit Contribution Margin:The Unit Contribution Margin represents the amount each unit…

Q: What is the value of the ending inventory of this financial accounting question?

A: Step 1: Definition of Absorption CostingAbsorption Costing is a costing method that includes all…

Q: It would have reported 2007 gross profit closest to ?

A: Concept of Gross ProfitGross Profit is the difference between a company's total revenue and the cost…

Q: hello teacher please solve questions

A: Step 1: Definition of Cost-Volume-Profit (CVP) AnalysisCVP analysis helps businesses determine the…

Q: What is the company's dividend payout ratio of this financial accounting question?

A: Step 1: Definition of Dividend Payout RatioThe Dividend Payout Ratio is the percentage of net income…

Q: What is the direct labor time variance

A: Concept of Standard Labor CostStandard labor cost refers to the predetermined cost of labor based on…

Q: general accounting

A: Step 1: Definition of SalesSales occur when a company transfers ownership of a product or service to…

Q: Hi expert give me answer

A: Step 1: Define Direct labor varianceDirect labor variance is computed to determine the difference…

Q: Answer? ? Financial accounting question

A: Step 1: Define Accounts Receivable TurnoverAccounts Receivable Turnover measures how efficiently a…

Q: A company's balance sheet shows total assets of $62,500 and total liabilities of $37,800. What is…

A: Explanation of Total Assets: Total assets represent everything of value that a company owns and…

Q: What should be the price earning ratio of this company? Give me solution

A: To determine the Price-Earnings (P/E) ratio, we use the formula: P/E = (1−b)/(r−g) Where:b =…

Q: No WRONG ANSWER

A: Concept of Accounts ReceivableAccounts receivable represents the total amount that a company is owed…

Q: General accounting question

A: Step 1: Define Operating LeverageOperating leverage calculates the percentage change in the…

Q: None

A: The real rate of interest represents the trade-off between present and future consumption. It…

Q: What is the book value at December 31?

A: Explanation of Straight-Line Depreciation Method: Straight-line depreciation is the simplest and…

Q: Do fast of this question answer general Accounting

A: Step 1: Define Operating Return on Assets (OROA)Operating Return on Assets (OROA) measures how…

Q: Answer financial accounting

A: Step 1: Define Actual Return on Plan AssetsThe actual return on plan assets measures the total…

Q: Provide calculation with answer sub. General accounting

A: Calculation of Predetermined Overhead RatePredetermined Overhead Rate= Estimated next period…

Q: Bix Corp. has a contribution margin ratio of 50%. This month, sales revenue was $250,000, and profit…

A: Explanation of Contribution Margin Ratio: The contribution margin ratio, which is 50% in this case,…

Q: Please solve this general accounting questions

A: To determine total assets, we sum up all the asset accounts. Based on the given information, the…

Q: can you please solve this

A: Step 1: Definition of Contribution Margin AnalysisContribution margin analysis helps businesses…

Q: Calculate the sample size based on the specifications in Buhi's contract. Make sure it is within…

Q: I want answer

A: Explanation of Predetermined Standard Variable Manufacturing Overhead Rate: This rate represents the…

Q: What was the variable overhead rate variance for the month?

A: Explanation of Variable Overhead Rate Variance:Variable Overhead Rate Variance measures the…

Q: Using the high-low method

A: Concept of High-Low MethodThe high-low method is a technique used in cost accounting to separate…

Q: Please provide solution this financial accounting question

A: Step 1: Define Discount FactorThe discount factor is a multiplier used to determine the present…

Q: None

A: Step 1: Calculate Flyrite's Current EPS (Earnings Per Share)Step 2: Calculate Flyrite's Current PE…

Question

100%

What was the cost of the inventory on this financial accounting question?

Ridge Retailers Inc. purchased inventory that had a list price of $15,000. The purchase
was made under terms 3/10, net 30, FOB shipping point. Freight costs amounted to
$400.
Assuming Ridge Retailers paid cash for the inventory after the discount period, what
was the cost of the inventory?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the inventory for a full refund, and received an allowance for $95, how much would the discount be if the retailer remitted payment within the discount window?
Use the following information to compute cost of goods sold under the FIFO and LIFO inventory methods. The firm sold 200 units.
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Jaffe Co. on February 28 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Coronado Co. on October 31 by the gross profit method, presenting details of the computations. b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that 366,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during May through October?
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
What is the total cost of the inventory of this financial accounting question?
Can you please solve these financial accounting question?