Question 48 (2 points) Pumpkin Head purchased $3,000 of merchandise from Jones Corp. on account. Pumpkin Head paid within ten days when the terms were 1/15 n/30. Record the journal entry for the payment by Pumpkin Head which uses the perpetual inventory system (note this is paid within the discount period -- unlike the horrible question on your review). 3,000 3,000 Accounts Payable Cash Accounts Receivable Merchandise inventory Cash 3,000 30 2,970 Cash 3,000 3,000 Accounts Payable Accounts Payable Merchandise inventory Cash 3,000 30 2,970 Question 49 (2 points) Mike's Overstock Retail Emporium, Inc. (MORE, Inc.) had the following merchandise transactions in October: Purchases Purchase returns Purchase discounts Transportation in $50,000 $ 3,000 $ 1,000 $ 2,000 What is the total cost of merchandise purchased for MORE, Inc.? $46,000 $52,000 $48,000 $50,000 Question 50 (2 points) Why is it important to manage inventory levels? Pick the answer that is most true. You don't ever want to run out and lose a sale, so it is important to carry lots of inventory. Your bonus might include targets on how much inventory you should carry. Having lots of inventory on hand will improve your current ratio making your balance sheet look healthy to outside investors and creditors. Because it costs money to carry extra inventory, it is best to develop quick! restock processes so only minimum amounts of inventory are stored on hand