Question : 41) Boise Cascade Company purchases $5,000 of merchandise from a : 1253268

41) Boise Cascade Company purchases $5,000 of merchandise from a vender with credit terms of 2/10, n/30. Assuming that Boise Cascade pays within the discount period, the total cost of the inventory is ________.

A) $5,000

B) $4,900

C) $4,500

D) $3,500

42) On January 5, Boise Cascade Company purchases $5,000 of merchandise from a vendor with credit terms of 2/10, n/30. If Boise Cascade pays the vendor on January 20, the amount of the payment should be ________.

A) $5,000

B) $4,900

C) $4,500

D) $3,500

43) On January 5, Boise Cascade Company purchases $5,000 of merchandise from a vendor with credit terms of 2/10, n/30. If Boise Cascade pays the vendor on January 13, the amount of the payment should be ________.

A) $5,000

B) $4,900

C) $4,500

D) $3,500

44) Rigby Company purchased merchandise from a supplier in Hong Kong with an invoice cost of $10,000 and shipping terms of FOB destination. The freight costs amount to $1,000. Rigby should record inventory at a cost of ________.

A) $11,000

B) $10,000

C) $9,000

D) $1,000

45) Banner, Inc. purchases $45,000 of merchandise from a vendor with credit terms of 2/10, n/30. Assuming that Banner pays within the discount period, the total cost of the inventory is ________.

A) $45,900

B) $45,000

C) $40,500

D) $44,100

46) Rigby Company buys merchandise from Shoshone Company with an invoice cost of $100,000 and shipping terms of FOB shipping point. The freight costs amount to $1,000. Which of the following statements is TRUE?

A) Rigby Company will record freight-in costs of $1,000.

B) Shoshone Company will record freight-out costs of $1,000.

C) Shoshone Company will record freight-in costs of $1,000.

D) Rigby Company will have inventory cost of $10,000.

47) Rigby Company buys merchandise from Shoshone Company with an invoice cost of $10,000 and shipping terms of FOB destination. The freight costs amount to $7,000. Which of the following statements is TRUE?

A) Rigby Company will record freight-in costs of $7,000.

B) Shoshone Company will record freight-out costs of $7,000.

C) Shoshone Company will record freight-in costs of $7,000.

D) Rigby Company will have inventory cost of $107,000.

48) Horse Creek Company had beginning inventory of $34,000, purchases of $210,000, purchase returns of $13,000, and ending inventory of $40,000. What was the cost of goods sold?

A) $204,000

B) $198,000

C) $157,000

D) $191,000

49) On May, 2, Breyer, Inc. purchases $25,000 of merchandise from a vendor with credit terms of 2/10, n/30. If Breyer pays the vendor on May 10, the amount of the payment should be ________.

A) $25,000

B) $24,500

C) $22,500

D) $27,500

50) Rigby Company buys merchandise from Shoshone Company with an invoice cost of $10,000 and shipping terms of FOB shipping point. The freight costs amount to $1,000. Which of the following statements is TRUE?

A) Rigby Company will record freight-in costs of $1,000.

B) Shoshone Company will record freight-out costs of $1,000.

C) Shoshone Company will record freight-in costs of $1,000.

D) Rigby Company will have inventory cost of $10,000.