**Inventory Purchase Analysis****Context**: Xavier Industries recently recorded several events related to an inventory purchase. **Details**:- **Purchase**: Merchandise was bought for $100,000.- **Return**: $17,000 worth of merchandise was returned for credit.- **Freight Costs**: $2,000 was paid for shipment.**Question**: Considering these transactions, how much did the company's inventory increase?**Options**:- ⬤ Increased by $82,700.- ○ Increased by $85,000.- ○ Increased by $87,000.- ○ Increased by $90,000.**Explanation**:The calculation involves subtracting the return from the purchase and then adding the freight cost: Total Inventory Increase = ($100,000 - $17,000) + $2,000 = $82,700.

Purchases$100,000Returns$17,000Freights$2,000

Xavier Industries recorded the following events involving a recent purchase of inventory: Purchases merchandise for $100,000; Returned $17,000 of the merchandise for credit; Paid $2,000 freight on the shipment. As a result of these events, the company's inventory increased by $82,700. increased by $85,000. increased by $87,000. increased by $90,000.

Xavier Industries recorded the following events involving a recent purchase of inventory: Purchases merchandise for $100,000; Returned $17,000 of the merchandise for credit; Paid $2,000 freight on the shipment. As a result of these events, the company's inventory increased by $82,700. increased by $85,000. increased by $87,000. increased by $90,000.

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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