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On May 10, 2005, Ramirez Company purchased P18,000 worth of merchandise from Valencia Company on account and with the following terms; 1/10, n/30, FOB shipping point. On May 12, 2005, Ramirez paid P360 on the shipment. On May 15, 2005, Ramirez returned P2,000 of merchandise for credit. Final payment was made to Valencia on May 21, 2005. The merchandise was then sold to cash customers for P30,600 on May 24, 2005. Problem 1: Assuming that Ramirez uses the periodic inventory system, the cost of the merchandise purchased by Ramirez from Valencia to be reflected as cost of goods sold on May 21 is
Option 1: 16,360Option 2: 16,196.40Option 3: not givenOption 4: 18,360
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