Flat Whyte Coffee Co. is a full-bean coffee retailer. On May 1, Flat Whyte Coffee Co bought 1000 lbs of coffee on account for $20,000 under the credit terms 2/10 n 30. On May 15, Flat Whyte Coffee Co sold 100 lbs worth of coffee on account for $5000. On May 17, Flat Whyte Coffee Co paid their outstanding bill.

____ 1. At the end of the period what is the value of Merchandise Inventory for Flat Whyte Coffee Co.

a. 17,000.

b. 18,000.

c. 22,000.

d. 15,000.

____ 2. Which of the following accounts is not affected by the sale of coffee on May 15

a. Merchandise Inventory.

b. Accounts Payable.

c. Interest Expense

d. Cost of Goods Sold.