On September 1, Marigold purchased $40600 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $850. Payment for the purchase was made on September 18. Assuming Marigold uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?

Question

Business

Abraham Marquez

6 April, 16:33

On September 1, Marigold purchased $40600 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $850. Payment for the purchase was made on September 18. Assuming Marigold uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase?

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Answers (1)

Know the Answer?

Salvatore Paul · Answer 1

amount inventory from purchase is $40194

Explanation:

given data

Marigold purchased = $40600

freight charge = $850

to find out

amount inventory from purchase

solution

we know here purchase discount is

that is = 40600 * 1%

discount = 40600 * 0.01

discount = $406

so

amount inventory from purchase = purchased - discount

put here value

amount inventory from purchase = 40600 - 406

amount inventory from purchase = 40194

so amount inventory from purchase is $40194