16. A company purchased inventory for $73,000 from a vendor on account, FOB shipping point, with terms of 4/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor nine days after the sale. If there was no beginning inventory, the cost of inventory would be ________. (Assume a perpetual inventory system.) A. $71,580 B. $74,500 C. $68,580 D. $71,500 E. Another answer.

17. Quality Jewelers uses the perpetual inventory system. On April 2, Quality sold merchandise for $60,000 to a customer on account with terms of 2/15, n/30. The allowances and returns on this sale amounted to $10,000. The cost of goods sold was $23,000. On April 20, Quality received payment from the customer. Calculate the amount of gross profit. A. $50,000 B. $23,000 C. $27,000 D. $25,800 E. Another answer.

18. Accrued expense is classified as a(n) ________ account. A. liability B. asset C. revenue D. Equity

19. Ted's Used Cars uses the specific identification method of costing inventory. During March, Ted purchased three cars for $8,000, $10,000, and $13,000, respectively. During March, two cars are sold for $15,000 each. Ted determines that at March 31, the $13,000 car is still on hand. What is Teds gross profit for March? A. $6,000. B. $12,000. C. $7,000. D. $9,000. E. Another answer.

20. Which of the following statements is not correct with respect to inventories? A. The LIFO method assumes that the costs of the earliest goods acquired are the last to be sold. B. It is generally bad business management to sell the most recently acquired goods first. C. Under LIFO, the ending inventory is based on the latest units purchased. D. All statements are correct.