MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Weston Jewelers uses the perpetual inventory system. On April 2, Weston sold merchandise with a cost of $6,000 for $9,000 to a customer on account with terms of 2/15, n/30. On April 4, the customer reported damaged goods, and Michelin granted a $1,000 sales allowance. On April 10, Weston received payment from the customer. Calculate the amount of net sales revenue. A) $8,000 B) $8,840 C) $7,840 D) $9,000 2) A company purchased inventory for $73,000 from a vendor on account, FOB shipping point, with terms of 4/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor nine days after the sale. If there was no beginning inventory, the cost of inventory would be _. (Assume a perpetual inventory system.) A) $74,500 B) $71,500 C) $68,580 D) $71,580 3) Avery, Inc. uses the periodic inventory system. On February 1, the corporation purchased inventory on account for $25,000. The terms of invoice were 3/10, n/30. The amount due was paid on February 9. Which of the following journal entries correctly records the payment in the books of Avery, Inc.? 25,000 A)Accounts Payable Cash 25,000 B) Accounts Payable | Merchandise Inventory Cash 25,000 T 7 50 24,250 25,000 C) Accounts Payable Purchase Discounts Cash 750 24,250 25,000 D) Accounts Payable Purchases 25,000 4) The terms of an invoice are 3/10, n/25. This means that a A) discount of 3 percent is allowed if the invoice is paid after 25 days B) discount of 25 percent is allowed if the invoice is paid within 10 days C) discount of 3 percent is allowed if the invoice is paid within 10 days D) discount of 10 percent is allowed if the invoice is paid within three days 5) FOB destination refers to a situation where title to goods while in transit belongs to the A) insurance agency B) seller C) buyer D) transport agency