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4 March, 14:00

country cupboard purchased inventory for $ 4 comma 800 and also paid a $ 360 freight bill. Country Cupboard returned 20 % of the goods to the seller and later took a 2 % purchase discount. Assume Country Cupboard uses a perpetual inventory system. What is Country Cupboard 's final cost of the inventory that it kept? (Round your answer to the nearest whole number.) A. $ 4 comma 123 B. $ 4 comma 045 C. $ 3 comma 763 D. $ 941

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  1. 4 March, 16:59
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    A. $ 4,123

    Explanation:

    For accounting purposes we will consider as cost to ivnentory all the necessarycost incurred to get the merchandise ready for use. Therefore the returns and dsicount decrease the inventory as they weren't cost incurred.

    The freight will count as necessary and incurred thus, added.

    Invoice nominal 4,800

    returns

    4,800 x 20% = (960)

    balance 3,840

    discount 2% (76.8)

    merchandise cost 3.763,2‬

    freights-in 360

    total cost 4,123.2
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Home » Business » country cupboard purchased inventory for $ 4 comma 800 and also paid a $ 360 freight bill. Country Cupboard returned 20 % of the goods to the seller and later took a 2 % purchase discount. Assume Country Cupboard uses a perpetual inventory system.
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