R&R Lumber reports a purchases of $40,000, a purchase return of $6,000, and a purchase discount of $1,500. What is the impact on Inventory?
A) $47,500
B) $32,500
C) $38,500
D) $36,000

Question

Quizplus · Accepted Answer

To calculate the impact on Inventory, we need to subtract the purchase return and add the purchase discount to the total purchases. 
$40,000 - $6,000 + $1,500 = $35,500
Therefore, the impact on Inventory is $35,500, which can be found in choice B.

R&R Lumber Reports a Purchases of $40,000, a Purchase Return