1. On Oct. 1, Maroon Out Co. sold merchandise on account, $18,000, terms 2/15, net 45. The cost of the merchandise sold is S15,500. On Oct. 3, Maroon Out Co. issued a credit memo for S1,750 for merchandise returned that originally cost S1,400. The buyer paid the invoice on Oct. 9. What is the amount of net sales from the above transactions? A. $16,250 B. $14,100 C. $15,9245 D. S13,818 2. Using the following information, what is the amount of cost of goods sold? . Purchases $32,000 Purchases discounts $960 Merchandise inventory, September 1, S5,700 Merchandise inventory, September 30, S6,370 Sales returns and allowances $910 . Sales S63,000 . Purchases returns and allowances $1,200 Freight In $1,040 A. $26,900 B. S20,530 C. $28,130 D. S30,210 3. Ending inventory is equal to the cost of items on hand plus A. Merchandise in transit sold to customers FOB shipping point B. Merchandise in transit sold to customers FOB destination C. The cost of all inventory purchased during the period D. Merchandise purchased in transit with terms FOB destination Use the following information for questions 4-7. Heisman Inc. uses the periodic inventory system. June On hand, 50 units @ $15.00 each Purchased 115 units @ $15.10 each S 750.00 1,736.50 14Purchased 75 units @ $15.20 each 3,626.5 Total cost of goods available for sale On hand, 90 units 30 4. If Heisman uses the FIFO inventory method, the amount assigned to the June 30 inventory would be A. S1,354.00 B. $1,366.50 C. $1,590.42 D. $1,594.00