Question

Tony's Market, which uses a perpetual inventory system, recorded the following events involving a recent purchase of inventory: - received goods for $30,000, terms 2/10, n/30 (recorded discount upon receipt of goods - returned $600 of the shipment for credit - paid $150 for freight on the shipment from the trucking company - paid the invoice within the discount period As a result of these events, the company's inventory:

A. increased by $28,812
B. increased by $29,550
C. increased by $28,959
D. increased by $28,962

Answer 1

company's inventory increase = $28962

so correct option is D. increased by $28,962

Step-by-step explanation:

given data

purchase of inventory = $30,000

returned = $600

credit paid = $150

to find out

the company's inventory will be

solution

company's inventory increase here by

so we know = purchase - returned - discount + credit paid

= 30000 - 600

= $29400

and discount = 2% of 29400 = 588

so company's inventory increase = 29400 - 588 + 150

company's inventory increase = $28962

so correct option is D. increased by $28,962