Question

Swifty Corporation uses the perpetual inventory and the gross method. On March 1, it purchased $46000 of inventory, terms 2/10, n/30. On March 3, Swifty returned goods that cost $4600. On March 9, Swifty paid the supplier. On March 9, Swifty should credit

Answer 1

Answer and Explanation:

The computation is shown below:

= (Purchase value of the inventory - returned goods) × discount applied

= ($46,000 - $4,600) × 2%

= $828

Here the perpetual inventory is followed so the Swifty should credit the discount amount by the name of the inventory at $828

Therefore the inventory should be credited by $828