Chapter 6, Problem 8E

Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System

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 inventor as of June 30.