Elite Apparel purchased 80 new shirts for cash and recorded a total cost of \(\$ 2,620\), determined as follows:

Required:
Make the needed corrections in this calculation. Prepare the journal entry(ies) to record this purchase in the correct amount, assuming a perpetual inventory system. Show computations.

Transcribed Image Text:

Invoice amount Shipping charges $2,160 175 Import taxes and duties. 145 Interest paid in advance on loan to finance the purchase 120 $2,620