Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25 % of the goods to the seller and later took a 1 % purchase discount. Assume Zephron Music uses a perpetual inventory system. What is Zephron Music 's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

Question

Business

Jermaine Ortiz

3 May, 12:28

Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25 % of the goods to the seller and later took a 1 % purchase discount. Assume Zephron Music uses a perpetual inventory system. What is Zephron Music 's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)

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Davon Norman · Answer 1

Cost of the inventory kept by Zephron Music is $3495

Explanation:

Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill

Inventory $4660 (debit)

Trade Payable $ 4400 (credit)

Bank $260 (credit)

Recognise an Asset - Inventory and De-recognise asset - Bank

Zephron Music returned 25 % of the goods to the seller, took a 1 % purchase discount

Trade Payable $1212

Inventory $1165 (credit)

Discount Received $47 (credit)

Therefore Inventory Balance = $4660-1165 = $3495