Cost of goods sold is $8,000 greater than net purchases. Beginning inventory is $120,000. What is the ending inventory?

a. $112,000

b. $128,000

c. $120,000

d. none of the above

A company makes a purchase of $2,000 of inventory, subject to credit terms of 3/10,n/45 and returns $500 of inventory prior to payment. What is the amount of the payment assuming payment is made within the discount period?

a. $1,500

b. $1,440

c. $1,560

d. $1,455

The entry to record the sale of $20,000 of merchandise on account with cost of $14,000, would include:

a. credit to accounts receivable for $14,000

b. debit to accounts receivable for $20,000

c. debit to cost of goods sold for $20,000

d. credit to inventory for $20,000