Vienna Stores recorded the following events involving a recent purchase of merchandise:
•Received goods for $60,000, terms 2/10, n/30.
•Returned $1,200 of the shipment for credit.
•Paid $300 freight on the shipment.
•Paid the invoice within the discount period.
As a combined result of these events, the company's inventory:

Question

Quizplus · Accepted Answer

The company's inventory increased by $57,924 after accounting for the purchase, return, freight, and payment within the discount period. The calculation is as follows: Initial purchase of $60,000 - returns of $1,200 = $58,800. The freight cost of $300 is added, making it $59,100. A 2% discount on the adjusted purchase amount ($58,800) equals $1,176, so $59,100 - $1,176 = $57,924.

Vienna Stores Recorded the Following Events Involving a Recent Purchase