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Glen Company uses the perpetual inventory system. The company entered into the following events: 1. 1) Purchased merchandise inventory that cost $10,000 under terms of 2/10, n/30. 2. 2) Made payment to the supplier within the discount period. 3. 3) Sold all of the goods to customers on account for $22,000. What is Glen's cost of goods sold as a result of these three transactions? $9,000 $9,800 $10,000 $21,800

Glen Company uses the perpetual inventory system. The company entered into the following events: 1. 1) Purchased merchandise inventory that cost $10,000 under terms of 2/10, n/30. 2. 2) Made payment to the supplier within the discount period. 3. 3) Sold all of the goods to customers on account for $22,000. What is Glen's cost of goods sold as a result of these three transactions? $9,000 $9,800 $10,000 $21,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Glen Company uses the perpetual inventory system. The company entered into the following events: 1. 1) Purchased merchandise inventory that cost $10,000 under terms of 2/10, n/30. 2. 2) Made payment to the supplier within the discount period. 3. 3) Sold all of the goods to customers on account for $22,000. What is Glen's cost of goods sold as a result of these three transactions? $9,000 $9,800 $10,000 $21,800
Transcribed Image Text:Glen Company uses the perpetual inventory system. The company entered into the following events: 1. 1) Purchased merchandise inventory that cost $10,000 under terms of 2/10, n/30. 2. 2) Made payment to the supplier within the discount period. 3. 3) Sold all of the goods to customers on account for $22,000. What is Glen's cost of goods sold as a result of these three transactions? $9,000 $9,800 $10,000 $21,800
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