Question

Swifty's Market used the perpetual method to record the following events involving a recent purchase of inventory:

Received goods for $75400, terms 2/12, n/30.
Returned $1300 of the shipment for credit.
Paid $700 freight on the shipment.
Paid the invoice within the discount period.

As a result of these events, the company's inventory

Answer 1

Inventory balance will be of 73,318

Step-by-step explanation:

Inventory 75,400

Account payable 75,400

to record goods received

Account payable 1,300

Inventory 1,300

to record return of goods

Inventory 700

Cash 700

to record payment of freight

Account Payable 74,100

Inventory 1,482

Cash 72,618

to record payment of invoice within discount period

75,400 - 1,300 = 74,100

74,100 x 2% = 1,482

Inventory balance:

DEBIT CREDIT

75,400

1,300

700

1,482

balance:

73,318