question archive Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for $50,000, terms 2/10, n/30
Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for $50,000, terms 2/10, n/30
Subject:AccountingPrice:2.87 Bought7
Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for $50,000, terms 2/10, n/30. Returned $1,000 of the shipment for credit. Paid $250 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by
a. $48, 020.
b. $48, 265.
c. $48, 270.
d. $49, 250.
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Answer:
| Goods Purchased | 50000 | |
| Less: Returns | -1000 | |
| Add: Freight | 250 | |
| Less: Discount | -980 | =(50000-1000)*2% |
| Net increase in inventory | 48270 | |
| Option C $48,270 is correct |
