Exhibit 8-1 Walters Co

Multiple Choice

Exhibit 8-1 Walters Co.purchased raw materials with a catalog price of $70, 000 on March 2, 2010.Credit terms of 4/20, n/60 applied.If Walters pays for the purchase on March 18, 2010, calculate what amount is recorded for inventory on March 2, 2010, using the method given.
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Refer to Exhibit 8-1.Walters uses a perpetual inventory system and the gross price method.

A) $42, 000
B) $56, 000
C) $67, 200
D) $70, 000