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22 April, 16:14

Tony's Market recorded the following events involving a recent purchase of inventory: Received goods for $80,000, terms 2/10, n/30. Returned $1,600 of the shipment for credit. Paid $400 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory

A. increased by $76,832.

B. increased by $78,800.

C. increased by $77,224.

D. increased by $77,232.

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Answers (1)
  1. 22 April, 18:04
    0
    Correct option is D

    Answer is increased by $ 77232

    Explanation:

    Effect on Inventory:

    Increase due to purchase $80000

    Decrease due to return - $1600

    Increase for freight paid $400

    Decrease for discouont availed - $1568 (78400*2%)

    Net Increase in Inventor = $77,232
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