Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. in its first month of operation, invento, inc.,

1. In its first month of operation, Invento, Inc., purchased $30,000 of inventory, paid $1,500...

70.2K

Verified Solution

Question

Accounting

1. In its first month of operation, Invento, Inc., purchased $30,000 of inventory, paid $1,500 for shipping costs, returned $4,500 of the shipment to the supplier, and received a $600 discount for early payments to its supplier. $6,000 0f the inventory (after all adjustment) was sold during the month for $10,500. The balance at the end of the month in inventory should be:

A. $19,500

B. $18,900

C. 26,400

D.20,400

E. 24,000

2. What is the benefit and cost of extending credit to customers:

  1. Benefit: Increased Sales; Cost: Uncollectible Account
  2. Benefit: More Customers; Cost: Increased Liabilities
  3. Benefit:More Customers; Cost: Lower Gross Profit
  4. Benefit: Increased Sales; Cost: Lower Gross Profit
  5. Benefit: Increased Sales; Cost: Increased Liabilities

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students