Question
Betty's company reported the following information relating to its inventory for 2020: sales revenue ............................. $457,000 freight-in ................................ 11,200 purchase returns .......................... 16,500 beginning inventory
Betty's company reported the following information relating to its inventory for 2020:
sales revenue ............................. $457,000
freight-in ................................ 11,200
purchase returns .......................... 16,500
beginning inventory ....................... 55,000
purchases ................................. 329,800
freight-out ............................... 10,900
sales returns & allowances ................ 15,000
purchase discounts ........................ ?
The company also reported the following financial statement ratios:
inventory turnover ratio .................. 4.12
gross profit rate ......................... 44%
Calculate the amount of purchase discounts reported by Betty's company during 2020.
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