1) Teresita, Inc. began operations in 2021 with a balance in its inventory account of $52,000. During the year, he purchased merchandise on credit for $280,000, with terms 2/10 n/30. All discounts were taken. All purchases were made in FOB shipping point. Teresita, Inc. paid the freight for $9,000. The cost of goods sold for 2021 was $316,000. Teresita, Inc. uses the perpetual inventory system.

After posting the above transactions, determine the ending balance of the inventory of Teresita, Inc. is: a. $15,400. b. $25,000. c. $6,480. d. $19,400.

2) A Company's inventory was destroyed in its entirety when the company's warehouse was set on fire on 28 November. The following data were obtained from the company's files until the day of the fire:

Net Sales $315,000

Profit margin as a percentage of sales 37.50%

Gross Purchases $200,000

Inventory Beginning Balance (January 1) $30,000

Returns on purchases made $10,000

Freight-in $4,000

Estimate the cost of inventory lost in the fire: a. $98,000. b. 27,125. c. $54,667. d. 34,456.