Question
Answer the following question: On January 10 Adrian Inc. ships inventory to Barry Ltd. for $8,250, FOB shipping point, 3/15, n/45. Shipping costs of $420
Answer the following question:
On January 10 Adrian Inc. ships inventory to Barry Ltd. for $8,250, FOB shipping point, 3/15, n/45. Shipping costs of $420 are paid in cash to the freight company by the appropriate party. On January 16 Barry Ltd. returns $2,400 of the product because it is the wrong color. Barry Ltd. pays the outstanding invoice on January 25. Both companies use the perpetual inventory system.
What is the value in the Inventory account at period end for Barry Ltd. if opening inventory was zero and no inventory was sold during the period?
a) $6,270.00
b) $6,094.50
c) $5,674.50
d) $6,081.90
e) $8,422.50
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