Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Brian dispatched goods to Ravi on a sale or return basis with a selling price of $5000. This selling price was calculated using a 25% mark-up. Ravi sent back goods with a selling price of $1000 and bought the rest. What was the net effect on Brian’s inventory value?

  • A$800 increase
  • B$1000 increase
  • C$3200 decrease
  • D$4000 decrease

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