A company using the perpetual inventory system purchased inventory worth $ 520 comma 000$520,000 on account with credit terms of 33 /15, n/45. Defective inventory of $ 60 comma 000$60,000 was returned 33 days later, and the account, What will be the remaining account?

Question

Business

Christine Mcpherson

30 October, 07:47

A company using the perpetual inventory system purchased inventory worth $ 520 comma 000$520,000 on account with credit terms of 33 /15, n/45. Defective inventory of $ 60 comma 000$60,000 was returned 33 days later, and the account, What will be the remaining account?

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Answers (1)

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Ricardo Conley · Answer 1

See the explanation.

Explanation:

Given,

Merchandise inventory $520,000

Less Defective inventory $60,000

Remaining merchandise inventory = $460,000

The company would get a discount of 3% if the company paid to the supplier within 15 days. However, the company has to pay $460,000 within 45 days.

As the company uses a perpetual inventory system, it will record each entry as merchandise inventory.