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During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: Jan. 6 Purchased goods
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $500 from Green with terms 2/12, n/45. 6 Purchased goods from Munoz for $950 with terms 2.5/12, n/45. 14 Paid Green in full. Feb. 2 Paid Munoz in full. 28 Purchased goods for $700 from Reynolds with terms 2.5/12, n/45. Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $940 purchase with cash. The goods cost Evergreen Company $570. 15 Sold merchandise to Claudio's Chair Company at a selling price of $4, 940 on terms 3/10, n/30. The goods cost Evergreen Company $3, 470. 20 Sold merchandise to Otto's Ottomans at a selling price of $2, 970 on terms 3/10, n/30. The goods cost Evergreen Company $1, 870. 23 Collected payment from Claudio's Chair Company from the July 15 sale. Aug. 25 Collected payment from Otto's Ottomans from the July 20 sale. Required: Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended August 31. (Round your answer to 2 decimal places.)
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