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1) Sunland's Market recorded the following events involving a recent purchase of inventory: Received goods for $121000, terms 2/15, n/30

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1) Sunland's Market recorded the following events involving a recent purchase of inventory:

Received goods for $121000, terms 2/15, n/30.

Returned $2900 of the shipment for credit.

Paid $700 freight on the shipment.

Paid the invoice within the discount period.

 

As a result of these events, the company's inventory

 

A. increased by $115738.

B. increased by $116424.

C. increased by $118800.

D. increased by $116438.

 

2) The collection of a $2300 account within the 2 percent discount period will result in a

 

A. credit to Accounts Receivable for $2254.

B. debit to Sales Discounts for $46.

C. debit to Accounts Receivable for $2254.

D. credit to Cash for $2254.

 

3) Skysong, Inc. sells merchandise on account for $6400 to Sheridan Company with credit terms of 2/8, n/30. Sheridan Company returns $1400 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

 

A. $4900

B. $6272

C. $6300

D. $5000