Question

purchased inventory for $ 4 comma 500 and also paid a $ 290 freight bill. Corner Market returned 40​% of the goods to the seller and later took a 2​% purchase discount. Assume Corner Market uses a perpetual inventory system. What is Corner Market​'s final cost of the inventory that it​ kept? (Round your answer to the nearest whole​ number.) A. $ 2 comma 936 B. $ 1 comma 764 C. $ 2 comma 817 D. $ 2 comma 646

Answer 1

Answer:

A. $ 2,936

Explanation:

Corner Market purchased $4,500 worth inventory from the suppliers, and also paid $290 freight bill for those inventory. It also returned 40% and received 2% discounts. Corner Market​'s final cost of the inventory that it​ kept is as follows:

Therefore, Merchandise Inventory =         $4,500

Less: Purchase Return $(4,500 × 40%) = ($1,800)

                                                                    $2,700

Less: Purchase discounts $(2,700×2%) = ($    54)

Net Merchandise Inventory                    = $2,646

Add: Freight bill                                           $  190

Final cost of Merchandise Inventory   = $2,936