Tony's Market 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 cre dit.
Paid $\$ 300$ freight on the shipment.
Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory

Question

Tony's Market 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 cre dit.
Paid $\$ 300$ freight on the shipment.
Paid the invoice within the discount period.

As a result of these events, the company's merchandise inventory

Quizplus · Accepted Answer

The company paid the invoice within the discount period, so it took the 2% discount. The amount of the discount is $60,000 x 0.02 = $1,200. The net amount of the invoice is $60,000 - $1,200 = $58,800. The company also paid $300 for freight, so the total cost of the merchandise is $58,800 + $300 = $59,100. The company returned $1,200 of the merchandise, so the net increase in merchandise inventory is $59,100 - $1,200 = $57,900.

Tony's Market Recorded the Following Events Involving a Recent Purchase $60,000\$ 60,000$60,000

Tony's Market Recorded the Following Events Involving a Recent Purchase $\$ 60,000$