Cost of Inventory Acquired On July 5, Feltham Company purchased on account a shipment of sheet steel from Northwest Steel Co. The invoice price was $200,000, F.O.B. shipping point. Shipping cost from the steel mill to Feltham's plant was $10,000. When inspecting the shipment, the Feltham receiving clerk found sev- eral flaws in the steel. The clerk informed Northwest's sales representative of the flaws, and after some negotiation, Northwest granted an allowance of $15,000. To encourage prompt payment, Northwest grants a 2% cash discount to customers who pay their accounts within 30 days of billing. Feltham paid the proper amount on August 1. 1. Compute the total cost of the sheet steel acquired. 2. Prepare the journal entries for the transaction. Omit explanations.