Question
1. Jorgensen Jelly Bean Co. purchased raw materials with a catalog price of $70,000 on January 2, 2018. Credit terms of 2/10, n/60 applied. Jorgensen
1. Jorgensen Jelly Bean Co. purchased raw materials with a catalog price of $70,000 on January 2, 2018. Credit terms of 2/10, n/60 applied. Jorgensen uses the gross price method. If Jorgensen pays for the purchase on March 15, 2018, what amount was recorded for inventory on January 2, 2018?
| a. | $70,000 |
| b. | $66,500 |
| c. | $59,500 |
| d. | $42,000 |
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Financial Accounting Information for Decisions
Authors: John J. Wild
9th edition
1259917045, 978-1259917042
