Question

Jones Manufacturing purchased $10,000 of merchandise inventory on account from a vendor and paid a $500 freight bill. The credit terms are 2/10 or n/30. Because some of the merchandise was not needed, Jones Manufacturing returned $2,000 the same day. Jones Manufacturing uses the perpetual inventory system and made payment for the merchandise, less the return, within the discount period.

What is the final cost of the merchandise inventory for Jones Manufacturing from this purchase?a. $8,000b. $8,340c. $7,840d. $10,094

Answer 1

What is the final cost of the merchandise inventory for Jones Manufacturing from this purchase?

$8340

Step-by-step explanation:

Purchased_________________________ 10000

Freigth Bill_________________________ 500

Credir terms________________________ 2/10 n/30

Returned __________________________ 2000

Purchase____________________________ 10000

Return____________________________ 2000

Net inventory 8000

Discount %_________________________ 2%

Discount ___________________________ 160

Net inventory_______________________ 7840

Freigth Bill_________________________ 500

Final cost__________________________ 8340