ERMEDIATE Airon's dress shop buys dresses from McGuire Manufacturing. Alison purchased resses from Mclauie use TER 9-INVEty 17 and received an invoice with a list price amount of $6,000 and payment terms of 2/10, n/'s the net method to record purchases, Alison should record the purchase at: ). Alison a. $5,880. b $5,940. c$6,000. d. s6,120. 7) Inventory records for Herb's Chemicals revealed the following: March 1, 2018, inventory: 1,000 gallons@$7.20-$7,200 Beda 35,880 rds: ed Purchases: Mar. 10 Mar. 16 Mar. 23 600 gals S 7.25 800 gals 7.30 600 gals s 7.35 Sales: Mar. 5 400 gals Mar. 14 700 gals Mar. 20 500 gals Mar. 26 700 gals Ending inventory assuming LIFO in a perpetual inventory system would be: a,$5,050. b. $5,080. . S5, 140. d.$4,960. 8) On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: Sales, January 1 through July 8 S 684,000 132,000 655,000 Inventory, January 1 Purchases, January 1 through July 8 Gross profit ratio 28% What is the estimated inventory on July 8 immediately prior to the fire? a. $183,400. b. $294,520. c. $492,480. d. $295,120. 9) Northwest Fur Co. started 2018 with $94,000 of merchandise inventory on hand. During 2018, $400,000 merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $7,500. Merchandise with an invoice amount of S5,000 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? a. $112,490. b. $116,500. c. S112,550. d. $120,300. 10) California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1,2018. preparing its insurance claim on the inventory loss, the company developed the following data: Inventor January 1, 2018, $460,000; sales and purchases from January 1, 2018, to May 1, 2018, $1,150,000 an $875,000 respectively. California consistently reports a 40% gross profit. The estimated inventory on 2018, is: . $645,000. b. S64 7,000, c. $705,000. d. S610,000