1. 3 Suppose Marks uses the perpetual inventory system to purchase T-shirts on account for $15,000 from an overseas supplier. It cost Marks $1,000 FOB supplier to ship the T-shirts as well as duty and excise fees of $200. Marks was also fined $300 for unloading the inventory in an unauthorized area.
   1. Compute the cost of inventory to Marks.
   2. Marks pays $500 cash to deliver the goods to three regional retail outlets. How would this cost be recorded?

Account for the total purchase cost of inventory

2. S54 The following data pertain to Zari Scarf and Hat for the year ended December 31, 2020:

Beginning inventory	$190,300
Purchases of inventory on credit during the year	$450,000
Cost of goods sold during the year	65% of sales
Sales (75% on credit) during the year	$800,000

1. Prepare entries for the following transactions using a perpetual inventory system:
   1. Purchase of inventory during 2020
   2. Sales during 2020
   3. Cost of goods sold during 2020
2. Compute the balance in the Inventory account on December 31, 2020.

Compute inventory balance