Recording the Cost of Purchases for a Merchandiser
Elite Apparel purchased 90 new shirts and recorded a total cost of $2,735 determined as follows:
Invoice cost | $2,250 |
Shipping charges | 185 |
Import taxes and duties | 165 |
Interest (6.0%) on 52,250 borrowed to finance the purchase | 135 |
| $2,735 |
Required:
Make the needed corrections in this calculation. Give the journal entry(ies) to record this purchase in the correct amount, assuming a perpetual inventory system. Show computations.
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