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8. Precision Musical Instruments, merchandisers of musical instruments has provided the following details Mars Aventory purchased on account $775 000 Mar 8 Freight in 45.000

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8. Precision Musical Instruments, merchandisers of musical instruments has provided the following details Mars Aventory purchased on account $775 000 Mar 8 Freight in 45.000 Mar. 13 Purchase returns 50.000 Mar. 14 Allowances by vendor 15.000 Mar. 20 Payment made to vende for purchases on March 5 Credit terms are: 3/20, 45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month. Assume that the perpetual inventory system is used O A $733,700 OB. $710,000 O c. $732,350 OD. $760,000 9. A company that uses the perpetual inventory system purchases inventory for $64,000 on account with terms of 2/10, 1/30. Which of the following is the journal entry to record the payment made within 10 days? O A, a debit to Accounts Payable for $64,000, a credit to Cash for $1.280, and a credit to Merchandise Inven OB. a debit to Accounts Payable for $62.720, a debit to Merchandise Inventory for $1.280, and a credit to C O c. a debit to Merchandise Inventory for $1.280, a debit to Accounts Payable for $64,000, and a credit to OD. a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1.280, and a credit to 10. What does "2/10" mean, with respect to credit terms of 2/10, 1/30? O A. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. OB. Interest of 10 percent will be charged if invoice is paid after two days. OC. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the involt OD. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. 11. Nichols Company had the following balances and transactions during 2018: Beginning Merchandise Inventory as of January 1, 2018 March 10 June 10 October 30 300 units at $82 Sold 70 units Purchased 600 units at $85 Sold 370 units What would be reported for Ending Merchandise Inventory on the balance sheet at December 31.1 perpetual inventory system and the first in, first-out inventory costing method are used? O A. $24,600 O B. $5,740 OC. $39,100 OD. $51,000

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