Tarik Retailers purchased merchandise with a list price of $90,000, subyect to a trade discount of 25%, purchases using the gross method and Tarik ts allowed a 2% cash discount for timely payment. Tank's entry to record the purchase should report the cost of the merchandise as: A. $90,000 B. $67.500 C. $66,150 D. $88,200 E. $57.300 6. Tarik records 7. The difference between assigning receivables and factoring receivables is A. When receivables are factored we retain ownership of our accounts B. When receivables are assigned C. when we factor receivables we are no longer responsible for returns of merchandise. D. When we assign receivables we are no longer responsible for returns of merchandise. E. Both A and C are correct. F. Both B and D are correct. G. There is really no difference between factoring and assigning receivables, they are both methods of selling our we retain ownership of our accounts receivable. receivables to another party 8. When applying the indirect method [allowance method] of accounting for LCM inventory values which of the following accounts is to be debited when the initial adjusting entry is made and market is lower than cost? A. Loss Due to Market Decline in Inventory Value. B. Cost of Goods Sold C. Inventory D. Allowance to Reduce Inventory to Market E. None of the above The following data is available for the Reed Company for use in the Conventional Retail method of inventory estimation. COST 49,250 175,130 RETAIL $70,000 320,000 Beginning Inventory Freight-in Net markups Net markdowns Net Sales 9,320 S 20,000 S 14,000 $336,000 9. Calculate ending inventory at cost A. $60,000 B. $37,800 C. $50,160 D. $34,200 E. None of the above. 10. The advantage of conventional retail method for estimating ending inventory over other retail methods is.. A. It is casier to compute than the other methods retail estimation methods B. It works for all inventory calculations regardless of a changing inventory/sales mix over time. C. It comes closest to the true cost value of the ending inventory D. It results in an estimate that is a fair presentation of lower of cost or market for inventory E. None of the above