Question

Crane’s Market recorded the following events involving a recent purchase of merchandise: Received goods for $44000, terms 1/10, n/30. Returned $900 of the shipment for credit. Paid $100 freight on the shipment. Paid the invoice within the discount period.

As a result of these events, the company’s inventory

increased by$42669.

increased by $42763.

increased by $42769.

increased by $43200.

Answer 1

Answer : C.

Company's inventory => {(Goods received - Returned goods) x (1-Discount %) + Freight}

=> {($44000 - $900) x (1-1%) + 100}

*** [ If the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days. Here, bill is paid within the discount period.]

=> {$43100 x .99 + 100}

=> $42769.

.'. Company's inventory increased by $42769.

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