Question

A company using the perpetual inventory system purchased inventory worth $ 520 comma 000$520,000 on account with credit terms of 33​/15, ​n/45. Defective inventory of $ 60 comma 000$60,000 was returned 33 days​ later, and the account, What will be the remaining account?

Answer 1

See the explanation.

Step-by-step explanation:

Given,

Merchandise inventory $520,000

Less Defective inventory $60,000

Remaining merchandise inventory = $460,000

The company would get a discount of 3% if the company paid to the supplier within 15 days. However, the company has to pay $460,000 within 45 days.

As the company uses a perpetual inventory system, it will record each entry as merchandise inventory.