Author Question: Banner, Inc. purchases 45,000 of merchandise from a vendor with credit terms of 2/10, n/30. Assuming ... (Read 58 times)

brutforce · **on:** Jul 5, 2018

Banner, Inc. purchases 45,000 of merchandise from a vendor with credit terms of 2/10, n/30. Assuming that Banner pays within the discount period, the total cost of the inventory is ________.

A) 45,900
B) 45,000
C) 40,500
D) 44,100

Question 2

In the retail inventory method, the cost to retail ratio is equal to the cost of merchandise sold divided by the retailprice of the merchandise sold.
a. True
b. False

Indicate whether the statement is true or false