uestion 7 3 pt TCO A LBJ Company recorded the following even

uestion 7 3 pt TCO A) LBJ Company recorded the following events involving a recent purchase of merchandise Received goods for $200,000, terms 2/10, n/30 Returned $5,000 of the shipment for a credit due to damaged goods Paid $2,500 for freight in. Paid the invoice within the discount period. As a result of these events, the company\'s merchandise inventory O increased by $193,600. O increased by $195,950. O increased by $197,500. O increased by $193,500. Question 8 3 pts

Solution

Answer is 1

193600

net purchase = Purchase- purchase retures =200000-5000 =195000

= discount on net purchase =195000*(1-.02) = 191100

cost of inventory =191100+2500 = 193600