Ask Question
10 March, 22:17

On September 1, Marigold purchased $40600 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $850. Payment for the purchase was made on September 18. Assuming Marigold uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?

+4
Answers (1)
  1. 10 March, 22:26
    0
    amount inventory from purchase is $40194

    Explanation:

    given data

    Marigold purchased = $40600

    freight charge = $850

    to find out

    amount inventory from purchase

    solution

    we know here purchase discount is

    that is = 40600 * 1%

    discount = 40600 * 0.01

    discount = $406

    so

    amount inventory from purchase = purchased - discount

    put here value

    amount inventory from purchase = 40600 - 406

    amount inventory from purchase = 40194

    so amount inventory from purchase is $40194
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On September 1, Marigold purchased $40600 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers