ACCOUNTING Chapter 6 Exercises Question 2 of 12 value 833 po

ACCOUNTING Chapter 6 Exercises Question 2 (of 12 value 8.33 points During the months of January and February. Axe Corporation purchased goods from three suppliers. The sequence of events was as follows Jan. 6 Purchased goods for $2,100 from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $800 with terms 2.5/10, n/30. 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $300 from Reynolds with terms 2.5/10, n/30 Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February Calculate the cost of inventory as of February 28 Hints References eBook & Resources Hint 1 O Type here to search

Solution

2.

Working:

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Cost of inventory

3200