During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence ofevents was as follows:June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.5 Returned goods costing $1,100 to Diamond Inc. for full credit.6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.11 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 handat the beginning of the month. Calculate the cost of inventory as of June 30.
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence ofevents was as follows:June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.5 Returned goods costing $1,100 to Diamond Inc. for full credit.6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.11 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 handat the beginning of the month. Calculate the cost of inventory as of June 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of
events was as follows:
June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.
5 Returned goods costing $1,100 to Diamond Inc. for full credit.
6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.
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.
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