When $10,000 of inventory is purchased with a six-month note payable bearing 4% interest, the inventory has a total cost of:
A)$10,400
B)$10,000
C)$10,200
D)$9,800

Name: When $10,000 of inventory is purchased with a six-month note payable bearing 4% interest, the inventory has a total cost of: A)$10,400 B)$10,000 C)$10,200 D)$9,800
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Question

Quizplus · Accepted Answer

The total cost of the inventory is $10,000. The interest on the note payable is a separate financial obligation and does not affect the initial cost of the inventory.

When $10,000 of Inventory Is Purchased with a Six-Month Note