Garrity, Incorporated uses the perpetual inventory method. During the year, Garrity purchased $34,500 of inventory on account under the terms 2/10, net 30. After receipt of the merchandise, Garrity discovered some of the merchandise was defective and returned $6,000 of merchandise. Garrity River paid the total liability for the merchandise retained within the discount period. All merchandise was finally sold for $39,000 cash.
Required:What is the net cash flow from operating activities resulting from the above transactions?

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The Answer of Garrity, Incorporated uses the perpetual inventory method. During the year, Garrity purchased $34,500 of inventory on account under the terms 2/10, net 30. After receipt of the merchandise, Garrity discovered some of the merchandise was defective and returned $6,000 of merchandise. Garrity River paid the total liability for the merchandise retained within the discount period. All merchandise was finally sold for $39,000 cash.
Required:What is the net cash flow from operating activities resulting from the above transactions?

Garrity, Incorporated Uses the Perpetual Inventory Method