Question 2)

Market Street Company reported the following balances:

Invoice Cost of Purchases $4,000,000

Purchase Returns and Allowances 700,000

Purchase Discounts Received 100,000

Transportation Cost (FOB Shipping point) 240,000

What is the companys net cost of purchases?

,440,000

Question 3)

On January 5, NCN Company purchased 11 all-terrain vehicles at a cost of $7,200 each. On February 12, they sold 8 vehicles for $9,200 per unit. If NCN uses a perpetual inventory system, the journal entry to record the sale on February 12th would be:

Question 4)

Yogi Bear Company sold merchandise in the amount of $23,200 to Boo Boo Bear Company on February 1, with credit terms of 2/10, n/30. The cost of the items sold is $9,600. On February 4, Boo Boo Bear Company returns some of the merchandise, which was restored into Yogi Bears inventory. The selling price and the cost of the returned merchandise are $3,200 and $2,000, respectively.

The entries that Yogi Bear Company must make will include: (assume both companies use the perpetual inventory method)