E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3]During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,500 from Diamond Inc. with terms 2/12, n/45. 5 Returned goods costing $1,300 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,200 with terms 2/12, n/45. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full. Required:Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Ending Inventory (Units) = Beginning Inventory + Purchases - Purchase Returns - Sales

Answered: During the month of June, Ace…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3]

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:

June	3	Purchased goods for $4,500 from Diamond Inc. with terms 2/12, n/45.
	5	Returned goods costing $1,300 to Diamond Inc. for credit on account.
	6	Purchased goods from Club Corp. for $1,200 with terms 2/12, n/45.
	11	Paid the balance owed to Diamond Inc.
	22	Paid Club Corp. in full.

Required:

Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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