1. Sams Club is a merchandising entity; on October 1^st, they purchased goods from a company for $22,000 with terms of freight on board (FOB) shipping point, 3/10, n/EOM, Sams Club paid 30% of the amount due on October 5^th, another 30% on October 9^th, and the remaining amount on October 14^th. What is the recorded value of goods in Sams Club Merchandise inventory account?

a.21,340

b.21,604

c.21,736

d.21,802

e.22,000

2. Starbucks uses a perpetual inventory system following LIFO. On September 1^st, the company had 50 bikes in inventory, which they had purchased at $50/unit. On September 6^th, they purchased 50 bikes at $80/unit. On September 9^th, they sold 75 bikes at $150/unit. What should Starbucks report as COGS?

a.4,500

b.4,875

c.5,000

d.5,250

e.none of the above