During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $2,100 from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $1,620 with terms 2/10, n/30 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $530 from Reynolds with terms 2/10, n/45 Required: Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Purchases Cost of inventory as of February 28
During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $2,100 from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $1,620 with terms 2/10, n/30 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $530 from Reynolds with terms 2/10, n/45 Required: Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Purchases Cost of inventory as of February 28
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of
events was as follows:
Jan. 6 Purchased goods for $2,100 from Green with terms 2/10, n/30
6 Purchased goods from Munoz for $1,620 with terms 2/10, n/30
14 Paid Green in full
Feb. 2 Paid Munoz in full
28 Purchased goods for $530 from Reynolds with terms 2/10, n/45
Required:
Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of
January, and no sales were made during January and February. Calculate the cost of inventory as of February 28.
Purchases
Cost of inventory as of February 28
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