A company purchased inventory for $73,000 from a vendor on account, FOB shipping point, with terms of 4/10, n/30. The company paid the shipper $1,500 cash for freight in. The company paid the vendor nine days after the sale

If there was no beginning inventory, the cost of inventory would be ________. (Assume a perpetual inventory system.)
A) $71,580
B) $74,500
C) $68,580
D) $71,500

A .Cost of Purchases $73,000
Less: Discount ($75,000 x 3%) 2,920
Net Purchases 70,080
Add: Freight-in 1,500
Cost of Inventory $71,580

Business

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