#12

A company purchased inventory for $2,500 from a vendor on account, FOB shipping point, with terms of 4/10, 1/30 The company paid the shipper $300 cash for freight in. The company then returned damaged goods worth $200. The invoice was then paid eight days after the invoice date Assuming that there was no beginning inventory balance, the cost of inventory would be (Assume a perpetual inventory system) A $2,200 OB. $2,400 OC $2,508 OD $2,208 account with terms of 1/15, 1/30 The journal entry to record the cost of goods sold would be 1,400 1,400 1,400 1,400 O A. Cost of Goods Sold Accounts Receivable O B. Cost of Goods Sold Merchandise Inventory OC Merchandise Inventory Cost of Goods Sold OD. Sales Revenue Cost of Goods Sold 1,400 1,400 1.400 1,400