contestada

During February, purchases were $100,000, all on account with terms 2/10, n/30. The cost to ship the purchases was $200 and the purchases were made FOB destination. Due to a problem in the color of some of the products, a purchase allowance was permitted in the amount of $1,000. All purchases were paid for in February, within the discount period. Total net activity in the inventory account in February was

Respuesta :

Answer:

$97,020

Explanation:

Given:

Purchase = $100,000

Purchase allowance = $1,000

Computation:

Net Purchase = Purchase - Purchase allowance

= $100,000 - $1,000 = $99,000

Deductible amount = 2% of net purchase

= $99,000 x 2%

= $1,980

Net Purchase after deducting Discount amount of 2%

= $99,000 - $1,980

= $97,020

Therefore , Net Inventory Account balance is $97,020.

Otras preguntas