Assume Andersons General Store bought on credit a truckload

Assume Anderson\'s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $23,000. If Anderson\'s paid National Trucking $650 cash for transportation, immediately returned goods to American Wholesaling costing $1,200, and then paid American Wholesaling within the 2/30, n/60 purchase discount period How much did this inventory cost Anderson\'s? Assume Anderson\'s uses a perpetual inventory system. Inventory Cost

Solution

Calculate inventory cost under perpetual inventory system :

Purchase cost	23000
Add: freight in	650
Less: Purchase return	-1200
Less: Purchase discount (23000-1200)*2%	-436
Total inventory cost	22014