Answer:
The a answer is $151,642
Explanation:
Cost of sales = opening/starting inventory plus purchases minus closing/ending inventory.
Therefore, closing/ending inventory = opening/starting inventory plus purchases minus cost of sales.
Opening inventory is $96,000
To determine purchases, we will factor in freight-in fee, merchandise return, discount received.
So purchase is:
Purchase on credit--------$430,000
Freight-in-----------------------$7,000
Merchandise return--------($4,100)
Discount received ([$430,000 - $4,100]x 1%)--------------------($4,259)
Purchase =$428,641
Cost of goods sold is $373,000
Therefore, ending or closing inventory is:
$96,000 + $428,641 - $373,000
=$151,642
