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10 February, 15:01

purchased inventory for $ 4 comma 500 and also paid a $ 290 freight bill. Corner Market returned 40 % of the goods to the seller and later took a 2 % purchase discount. Assume Corner Market uses a perpetual inventory system. What is Corner Market 's final cost of the inventory that it kept? (Round your answer to the nearest whole number.) A. $ 2 comma 936 B. $ 1 comma 764 C. $ 2 comma 817 D. $ 2 comma 646

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  1. 10 February, 18:04
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    A. $ 2,936

    Explanation:

    Corner Market purchased $4,500 worth inventory from the suppliers, and also paid $290 freight bill for those inventory. It also returned 40% and received 2% discounts. Corner Market 's final cost of the inventory that it kept is as follows:

    Therefore, Merchandise Inventory = $4,500

    Less: Purchase Return $ (4,500 * 40%) = ($1,800)

    $2,700

    Less: Purchase discounts $ (2,700*2%) = ($ 54)

    Net Merchandise Inventory = $2,646

    Add: Freight bill $ 190

    Final cost of Merchandise Inventory = $2,936
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Home » Business » purchased inventory for $ 4 comma 500 and also paid a $ 290 freight bill. Corner Market returned 40 % of the goods to the seller and later took a 2 % purchase discount. Assume Corner Market uses a perpetual inventory system.
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