Question
Cindy's Appliance Store uses a perpetual inventory system, and ending inventory at April 30 was $25,000. Following is a listing of transactions for Cindy's for
Cindy's Appliance Store uses a perpetual inventory system, and ending inventory at April 30 was $25,000. Following is a listing of transactions for Cindy's for the month of May. Cindy's purchased refrigerators from GE on account at a total cost of $500,000 with terms 2/10, n/30. Cindy's also pair freight of $800 on the rerifgerators purchased from GE. Several of the refrigerators had to be returned to GE, and GE issued a credit to Cindy's for 10 refrigerators that cost $10,000. Cindy's then paid the amount due to GE within 7 days of the invoice date. Lastly, Cindy's sold refrigerators on account that had cost $250,000 for $375,000 to Marc's Pizza Palace.
What is the balance in Cindy's inventory account at the end of May?
What is Cindy's gross margin for the month of May?
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