Question

Question 3 Anderson's Soccer Ball Company uses a perpetual inventory system. The beginning balance in its Inventory account is $3,500, and the ending balance is $2,000. Cost of goods sold is $6,500. What was the amount of inventory purchased during the year? Not yet answered Marked out of 2.50 P Flag question Select one A $5,000 B. $8,000 C. $1.000 D. $2.500 Question 4 Not yet answered Travel Co. sold merchandise to Trapani Co on account. $17.000, terms 2/15, net 45. The cost of the merchandise sold is $15,400. Travelll Coissued an allowance for $1,750 for merchandise returned that originally cost $1,400 Trapani Co paid the invoice within the discount period. What is amount of net sales from the above transactions? Marked out of 2.50 P Flag question Select one A $17,000 B. $15,250 CS14.945 D. None of these choices

Answer 1

Answer 1.

Option A is correct.

Answer 2.

Option C is correct under net method.
+Purchases – Endling Inventory Purchases- $2000. Sooo discount otherwise, total amount is due Question :3 Cost of Gooddo Sold: slexting Inver-topy $6500 $3500 - Purchased during year within 45 days. Total Sales Value =417000. (less): sales Return = $1750 Net Sales $15250 means Question: 4: 2/15, net ur if a bill is Paid within 15 days, there is a 24. Now, Two Methods arises for Trade credit: Net Method Gross Method Accounts Receivab. $1525 Accounts Reain. $14945 Sales Revenue $ 14945 Sales Revenue $15250 & If Paid within 15 days. If paid within 15 days Cash $14945 Cash $14945 Accounts Receivab. $14945 Cash Discount $ 305 Accounts Receivable $15257 CS Scanned with CamScanner

OBJECT: Goss Method: مل 63 Net Method W if Not Paid within 15 days: is not paid within 15 days. cach $15950 Accounts Receivable $14945 Interest Revenue $305 Cash $15253 Accounts Receivabs said Hence, Net sales Revenue under Net Methad Under Gooss Method u $ 15950 [$14945 CS Scanned with CamScanner

Option B is correct under gross method.

In the second answer,

There are two options which are explained in answer. Have a carefully read.

Please find the attached solution.

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