Q10.

Why the answer of this question is B??

Please let me know...

10. Cinnamon-Buns Co. (CBC) started 2021 with $52,000 of merchandise on hand. During 2021,$280,000 in merchandise was purchased on account with credit terms of 2/10n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system. Assuming CBC uses the gross method to record purchases, ending inventory would be: A. $6,480. B. $15,400. C. $15,480. D. $21,000. (280.0004000)2% 11. The capitalized cost of equipment excludes: A. Maintenance. B. Sales tax. C. Shipping