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A company uses a perpetual inventory system and has the following transactions. April 1 Beginning inventory was $10,000 April 2 Purchased $4,000 of merchandise from
A company uses a perpetual inventory system and has the following transactions.
April 1 | Beginning inventory was $10,000 |
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April 2 | Purchased $4,000 of merchandise from Lyon Company on credit, invoice dated April 2, and FOB shipping point. |
April 3 | Paid $150 cash for shipping charges on the April 2 purchase. |
April 4 | Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. |
April 17 | Sent a check to Lyon Company for the April 2 purchase, net of the returned merchandise. |
April 18 | Purchased $7,500 of merchandise from Frist Corporation on credit, invoice dated April 18, and FOB destination (received on 4/20). |
April 21 | After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $7,500 owed on the April 18 purchase. |
April 28 | Sent check to Frist paying for the April 18 purchase, net of the discount. |
Required: What is the ending inventory balance?
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