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A company purchases inventory costing $1,000 on terms of n/30, FOB shipping point. The shipping charges of $100 were paid by the responsible party. The

A company purchases inventory costing $1,000 on terms of n/30, FOB shipping point. The shipping charges of $100 were paid by the responsible party. The company will record the cost of this inventory at:

  • $900

  • $1,000

  • $1,100

  • $0; the inventory cost will be recorded when the inventory is sold

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