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At the beginning of the year, Bramble Shipping Ltd., a company that has a perpetual inventory...

At the beginning of the year, Bramble Shipping Ltd., a company that has a perpetual inventory system, had $55,000 of inventory. During the year, inventory costing $217,800 was purchased. Of this, $25,800 was returned to the supplier and a 5% discount was taken on the remainder. Freight costs incurred by the company for inventory purchases amounted to $2,900. The cost of goods sold during the year was $222,200. Determine the balance in the Inventory account at the end of the year.

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Answer #1
Beginning inventory $      55,000
Add: Purchases $   217,800
Less: Purchase return $   (25,800)
Less: Purchase discount ($217,800-$25,800)*5%) $      (9,600)
Add: Freight charge $        2,900
Less: Cost of goods sold $ (222,200)
Ending inventory $      18,100

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