Answer:
a. Feb. 2
Dr Merchandise Inventory $23,800
Cr Accounts Payable $23,800
4 Dr Merchandise Inventory $50
Cr Cash $50
9 Dr Accounts Payable $5,200
Cr Merchandise Inventory $5,200
14 Dr Accounts Payable $18,600
Cr Cash $18,228
Cr Merchandise Inventory $372
2. Inventory cost $18,278
Explanation:
a. Preparation of the journal entries
Feb. 2
Dr Merchandise Inventory $23,800
Cr Accounts Payable $23,800
4 Dr Merchandise Inventory $50
Cr Cash $50
9 Dr Accounts Payable $5,200
Cr Merchandise Inventory $5,200
14 Dr Accounts Payable $18,600
($23,800 − $5,200)
Cr Cash $18,228
($18,600 – $372)
Cr Merchandise Inventory $372
($18,600 × 0.02)
2. Calculation to determine how much did the inventory cost Burlington Drug Store
Inventory cost =($23,800 + $50 – $5,200 – $372)
Inventory cost =$18,278
Therefore how much did the inventory cost Burlington Drug Store is $18,278
