Question

Downtown Market

purchased inventory for

$5,000

and also paid a

$250

freight bill.

Downtown Market

returned

25​%

of the goods to the seller and later took a

1​%

purchase discount. Assume

Downtown Market

uses a perpetual inventory system. What is

Downtown Market​'s

final cost of the inventory that it​ kept? (Round your answer to the nearest whole​ number.)

Answer 1

Correct answer------------$3,962

Working

Goods purchased	$       5,000.00
Add: Freight paid	$           250.00
Less: Goods returned	$     (1,250.00)
Less: discount availed ((5000-1250) x 1%)	$           (37.50)
Final cost of the inventory that it​ kept	$       3,962.50