Wilson started business on Jan.1 2019. During the year, the company purchased merchandized with list price of  6,250,000 with trade and cash discounts of 20% and 5% respectively. Wilson paid 110,000 freight on the merchandise. During the year, he returned 800,000 worth of merchandise to its suppliers. All purchase were paid within the discounted period. Merchandise was sold with a profit of rate of 20% based on sales resulted to a gross profit 995,000. 

What was the December 31 balance in the inventory account?

Answer rating: 100% (QA)

To calculate the December 31 balance in the inventory account we need to start with the cost of good... View the full answer