Analyze purchases of merchandise inventory. (LO 1)

Guppies \& Mollies Inc. made the following purchases in July of the current year.

July 3 Purchased \(\$ 7,500\) of merchandise, terms \(1 / 10, n / 30\), FOB shipping point July 6 Purchased \(\$ 4,100\) of merchandise, terms \(2 / 15, \mathrm{n} / 45\), FOB shipping point July 11 Purchased \(\$ 8,600\) of merchandise, terms \(3 / 5, \mathrm{n} / 15\), FOB destination

\section*{Required}

a. For each of the purchases listed, how many days does the company have to take advantage of the purchase discount?

b. What is the amount of the cash discount allowed in each case?

c. Assume the freight charges are \(\$ 250\) on each purchase. What is the amount of freight that Guppies \& Mollies must pay for each purchase?

d. What is the total cost of inventory for Guppies \& Mollies for the month of July, assuming that all discounts were taken?