Horner Co. is a merchandise business that use periodic system for their inventory valuation. The following are Horner Co. transactions for January 2015:

Jan. 3 Sell merchandise to Ziesmer $8,000, terms 2/10, n/30.

5 Purchase merchandise from Pheatt $2,000, terms 2/10, n/30.

11 Pay freight on merchandise purchased $300.

12 Pay rent of $1,000 for January.

13 Receive payment in full of Ziesmer.

15 Send Pheatt a check for $950.

17 Purchase merchandise from Roland $1,600, terms 2/10, n/30.

18 Pay sales salaries of $2,800 and office salaries $2,000.

23 Total cash sales amounts to $9,100.

24 Sell merchandise on account to Kirk $7,400, terms 1/10, n/30.

29 Kirk returned merchandise of $1,000.

30 Return merchandise of $300 to Roland.

31 pay Roland for January 17 credit purchase.

The cash amount received on January 13 is:

a.

$ 8,000

b.

None of the given options

c.

$7,840

d.

$ 7,920

Which type of inventory system is updated inventory system?

a.

LIFO

b.

Periodic inventory system

c.

Contingency inventory system

d.

Perpetual inventory system

10. The purchase discount on January 31st is:

a.

None of the given options

b.

$ 13

c.

$ 26

d.

$48