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Allson's dress shop buys dresses from McGuire Manufacturing. Allson purchased dresses from McGulre on July 17 and recelved an involce with a fist price amount
Allson's dress shop buys dresses from McGuire Manufacturing. Allson purchased dresses from McGulre on July 17 and recelved an involce with a fist price amount of $5,500 and payment terms of 1/10,n/30. Alison uses the net method to record purchases. Alison should record the purchase at: Multiple Choice $2722 55,445 55,500 55,555 Cinnamon Buns Company (CBC) started 2024 with $53,300 of inventory on hand. During 2024, $285,000 in inventory was purchased on account with credit terms of 3/10,n/30. All discounts were taken. Purchases were all made fo.b. shipping point. CBC poid freight charges of $9,700. Inventory with an involce amount of $2,000 was returned for credit. Cost of goods sold for the year was $297,000. CBC uses a perpetual inventory system. Assuming CBC uses the gross method to record purchases, ending inventory would be: Multiple Choice $40.450 $49,000 530,810. $10510
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