Answered

Tony's Market recorded the following events involving a recent purchase of inventory:
Received goods for $80,000, terms 2/10, n/30.
Returned $1,600 of the shipment for credit.
Paid $400 freight on the shipment.
Paid the invoice within the discount period.

As a result of these events, the company's inventory:

A. increased by $77232.
B. increased by $76832.
C. increased by $78800.
D. increased by $77224.

Answer :

Answer:

Correct option is A

Explanation:

Effect on Inventory:    

Increase due to purchase 80000  

Decrease due to return  -1600  

Increase for freight paid 400  

Decrease for discount availed -1568 (78400*2%)

Net Increase in Inventory 77232  

Answer is increased by $ 77232    

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