Question
Landry Company purchased $15,000 in inventory on April 1 under terms of 110/110 , net 30. Landry missed the prompt payment deadline and still holds
Landry Company purchased $15,000 in inventory on April 1 under terms of 110/110 , net 30. Landry missed the prompt payment deadline and still holds all the inventory. Under the gross method and the net method, at what amount is the inventory carried on Landrys balance sheet?
| Gross Method | Net Method | |
|---|---|---|
| a. | $ 15,000 | $ 15,000 |
| b. | $ 15,150 | $ 15,150 |
| c. | $ 15,000 | $ 14,850 |
| d. | $ 14,850 | $ 15,000 |
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Intermediate Accounting Volume 2
Authors: Kin Lo, George Fisher
4th Edition
0135220491, 9780135220498
