2 The information below relates to inventory item Z. March 150 units held in opening inventory at a cost of $40 per unit 1750 units purchased at a cost of $50 per unit 3160 units sold at a selling price of $100 per unit Under AVCO, what is the value of inventory held for item Z at the end of March 31 ? A $4,000 B $1,800 C $2,000 D $2,500 2 marks 3 A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax is purchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%. What would the accounting equation after these transactions show? A Assets $1,800 less Liabilities $200 equals Capital $1,600 B Assets $2,200 less Liabilities $1,000 equals Capital $1,200 C Assets $2,600 less Liabilities $800 equals Capital $1,800 D Assets $2,600 less Liabilities $1,000 equals Capital $1,600 2 marks 4 Alana is not registered for sales tax purposes. She has recently received an invoice for goods for resale which cost $500 before sales tax, which is levied at 15%. The total value was therefore $575. What is the correct entry to be made in Alana's general ledger in respect of the invoice? A Dr Purchases $500, Dr Sales tax $75, Cr Payables $575 B Dr Purchases $575,Cr Sales tax $75,Cr Payables $500 C Dr Purchases $500,Cr Payables $500 D Dr Purchases $575, Cr Payables $575 2 marks