Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25% of the goods to the

Question

3 years ago

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Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25% of the goods to the

seller and later took a 1% purchase discount. Assume Zephron Music uses a perpetual inventory system. What is Zephron Music's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

Business

1 answer:

asambeis [7] · Answer 1 · 2022-03-29T17:43:44+03:00

Answer:

Cost of the inventory kept by Zephron Music is $3495

Explanation:

Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill

Inventory $4660 (debit)

Trade Payable $ 4400 (credit)

Bank $260 (credit)

Recognise an Asset - Inventory and De-recognise asset - Bank

Zephron Music returned 25% of the goods to the seller, took a 1% purchase discount

Trade Payable $1212

Inventory $1165 (credit)

Discount Received $47 (credit)

Therefore Inventory Balance = $4660-1165 = $3495

Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25​% of the goods to the

Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25% of the goods to the