Purchase discounts and transportation costs
Marino Basket Company had a $6,200 beginning balance in its Merchandise Inventory account. The following information regarding Marino’s purchases and sales of inventory during its 2011 accounting period were drawn from the company’s accounting records.
1. Purchased $22,500 of inventory under terms 1/10, net/60. Transportation costs amounted to $400. The goods were delivered FOB shipping point. Marino paid for the inventory within the discount period.
2. Purchased $24,000 of inventory under terms 2/10, net/30. Transportation costs amounted to $600. The goods were delivered to Marino FOB destination. Marino paid for the inventory after the discount period had expired.
3. Sold inventory that cost $48,000 for $64,000. Transportation costs for goods delivered to customers amounted to $2,400. The goods were delivered FOB destination.
Required
a. Determine the balance in the Inventory account at the end of the accounting period.
b. Is Marino or its customers responsible for the transportation costs described in Event 3?
c. Determine the gross margin.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.