Ask Question
BusinessBusiness
28 August, 04:39

ACB Manufacturing purchased $6,000 of merchandise inventory from a vendor on account with credit terms of 2/10 or n/30. Because some of the merchandise was damaged, ACB Manufacturing returned $1,000 of the merchandise two days later. ACB Manufacturing uses the perpetual inventory system and made payment for the merchandise, less the return, within the discount period.

What is the final cost of the merchandise inventory for ACB manufacturing from this purchase?

-$5,000

-$4,900

-$4,880

-$5,880

+5
Answers (1)
  1. 28 August, 05:34
    0
    The answer is: Inventory cost is $4,900

    Explanation:

    ACB Manufacturing purchased $6,000 worth of merchandise with credit terms 2/10 or n/30. This means that if the company pays its debt within 10, it will receive a 2% discount.

    It returned $1,000 worth of defective merchandise, decreasing its total debt to $5,000. Since ACB Manufacturing paid its debt within the first ten days, it got a 2% discount. It paid a total of $4,900 for the merchandise, so that should be its inventory cost.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “ACB Manufacturing purchased $6,000 of merchandise inventory from a vendor on account with credit terms of 2/10 or n/30. Because some of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
If the interest rate rises, the A. quantity of loanable funds demanded by firms decreases B. quantity of loanable funds demanded by government decreases C. quantity of loanable funds demanded by firms increases D.
Answers (1)
A micro loan would mostly likely support which of the following projects? a. cattle farming b. textbooks for school c. handcrafts d. tobacco plantation
Answers (2)
Jim makes a contract with Oleta to sell her a 1965 lava lamp once owned by a famous artist. Jim later decides that he does not want to sell the lamp to Oleta. In this scenario, Oleta: Select one: a.
Answers (1)
Shadee Corp. expects to sell 550 sun visors in May and 380 in June. Each visor sells for $12. Shadee's beginning and ending finished goods inventories for May are 85 and 45 units, respectively.
Answers (1)
Is this statement true or false? Businesses react to contractions in the economy by increasing output. true false
Answers (1)
New Questions in Business
Conflict in organizations Select one: a. can serve as an opportunity for growth. b. often has negative consequences, and therefore must be managed carefully. c. can clarify relationships and provide new ways to think about issues. d.
Answers (1)
Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc.
Answers (1)
What do confucians and legalists think about the value of the past as a model for the present?
Answers (1)
The biggest factor in determining the price of a mortgage is: A The interest rate. B the total cost of the home. C The down payment. D The lender.
Answers (1)
1. The textbook describes how Political, Economic, and Cultural factors can influence international logistics.
Answers (1)
Home » Business » ACB Manufacturing purchased $6,000 of merchandise inventory from a vendor on account with credit terms of 2/10 or n/30. Because some of the merchandise was damaged, ACB Manufacturing returned $1,000 of the merchandise two days later.
Sign Up Forgot Password?