Exhibit 7-1 Edwards Co. Purchased Raw Materials with a Cost of $95,000

Multiple Choice

Exhibit 7-1
Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2015. Credit terms of 3/20, n/60 applied. Edwards paid for the purchase on March 18, 2015. Calculate the amount at which Edwards would record the inventory on March 2, 2015, the date of purchase, using the method given.
-Refer to Exhibit 7-1. Edwards uses a perpetual inventory system and the gross price method.

A) $42,000
B) $76,000
C) $92,150
D) $95,000