Question

On September 1, Horton purchased $13,300 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $280. Payment for the purchase was made on September 18. Assuming Horton uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?

a. $13,580

b. $13,300

c. $13,167

d. $13,447

Answer 1

correct option is c. $13,167

Step-by-step explanation:

given data

purchased = $13,300

terms = 1/15, net 30

Freight charges = $280

solution

we get here amount that is record as inventory by purchase as

amount record as inventory by purchase = purchased × ( 1 - 0.01)

amount record as inventory by purchase = $13300 × ( 1 - 0.01)

amount record as inventory by purchase = $13300 × 0.99

amount record as inventory by purchase = $13,167

so correct option is c. $13,167