ABC Co. purchased inventory that cost $5,000 under terms 2/10, n/30. The inventory was delivered under...
ABC Co. purchased inventory that cost $5,000 under terms 2/10, n/30. The inventory was delivered under terms FOB destination. ABC paid for the inventory within ten days. ABC sold the goods on account for $6,500, freight terms FOB destination. Freight costs of $160 were paid in cash.
ABC would report net income on its income statement of Group of answer choices
a. $1,190.
b. $1,350.
c. $1,440.
d. $1,600.
Homework Answers
Calculate net income
| Sales revenue | 6500 | |
| Purchase | 5000 | |
| Purchase discount | -100 | -4900 |
| Income | 1600 | |
So answer is d) $1600
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