1.Horse Creek Company had beginning inventory of $34,000, purchases of $210,000, purchase returns of $13,000, and ending inventory of $40,000. What was the cost of goods sold?
A. $198,000
B. $191,000
C. $157,000
D. $204,000
2.Ace Electronics accepted a promissory note from Fenstermaker, who promised to pay Ace $2,000 plus 6% interest at the end of six months. What is the amount of interest that will be paid at the end of six-month period?
A. $2,060
B. $240
C. $60
D. $120
3.The Ribbon Company began the operation on May 1. The following transaction took place in May:
Purchased $400,000 of merchandise on account.
Purchase an additional $200,000 of merchandise for cash.
Paid $3,000 cash for freight to deliver the merchandise purchased.
Paid $25,000 for the store managers' monthly salaries.
The cost of the inventory purchased for the month of May equals____.
A. $628,000
B. $400,000
C. $600,000
D. $603,000