On September 1, Dondra purchased $9,500 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $200. Payment for the purchase was made on September 18. Assuming Dondra uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded on September 1 as accounts payable from this purchase?

A) $9,700
B) $9,605
C) $9,500
D) $9,405

Answer: B

Business

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John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars: Trail Blazer Grand Cherokee Acquisition cost $25,000 $6,000 Repairs $ 6,000 — Annual operating costs (Gas, maintenance, insurance) $ 2,280 $2,100 A) acquisition cost of the Trail Blazer B) acquisition cost of the Grand Cherokee C) repairs to the Trail Blazer D) annual operating costs of the Grand Cherokee

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