1. In its first month of operation, Invento, Inc., purchased $30,000 of inventory, paid $1,500 for shipping costs, returned $4,500 of the shipment to the supplier, and received a $600 discount for early payments to its supplier. $6,000 0f the inventory (after all adjustment) was sold during the month for $10,500. The balance at the end of the month in inventory should be:

A. $19,500

B. $18,900

C. 26,400

D.20,400

E. 24,000

2. What is the benefit and cost of extending credit to customers:

1. Benefit: Increased Sales; Cost: Uncollectible Account
2. Benefit: More Customers; Cost: Increased Liabilities
3. Benefit:More Customers; Cost: Lower Gross Profit
4. Benefit: Increased Sales; Cost: Lower Gross Profit
5. Benefit: Increased Sales; Cost: Increased Liabilities